State Airbnb laws2026 31 sources cited

South Dakota Short-Term Rental Laws & Hotel Tax (2026)

Yes. South Dakota allows Airbnb hosting; a home rented whole for more than 14 days a year needs a state lodging license ($170 the first year, $70 after), cities and counties add permits, and taxes run about 8.7%.1,3,4,5,6,7,15

Source: AirROI Reviewed by , Founder @ AirROI Updated

From 27 official sources, 1 Airbnb help page and 3 news reports, checked October 17, 2026. Not legal advice.

The short answer

South Dakota Airbnb Laws in Brief

  • State lodging license for a home rented whole more than 14 days a year: $100 one-time fee, $45 license and $25 inspection.
  • Local permits: Rapid City registration (since January 9, 2026), Sioux Falls $50 permit, Pennington County $150 license for three years; Deadwood bars rentals in residential zones.
  • Tax on stays under 28 nights: 4.2% state, 2% city, 1% city gross receipts and 1.5% tourism, about 8.7%; Airbnb collects it.
  • Operating without the state license is a Class 2 misdemeanor: up to $500, 30 days in jail, or both.

At a glance

South Dakota Short-Term Rental Laws at a Glance

State license required
Yes
Next rule change
Jul 1, 2027

The laws in brief

The rules a South Dakota host meets first, each linked to the ordinance, statute or official page it comes from. Details and exceptions follow below.

South Dakota Short-Term Rental Laws at a Glance
TopicRule
PermitState lodging license for whole-home rentals1,3,15
Who can hostWhat counts as a vacation home1
WhereCities and counties set zoning and permits24,25
GuestsPennington County: five bedrooms, 14 guests21
Listing displayRapid City: registration number in every listing12
SafetyHealth inspection before licensing6,15

Your home

Can You Host an Airbnb in South Dakota? It Depends on the Home

Whether you can host in South Dakota turns on whose home it is and whether you live there.

Your own home, rented whole while you're away

Allowed with conditions

Renting for more than 14 days a year makes it a vacation home establishment: state lodging license ($170 the first year), state sales tax license and any city or county registration, such as Rapid City's. At 14 days or fewer the state vacation home license does not apply, but rentals above 10 days a year are taxable.1,4,5,6,16,22

A second home or investment property you don't live in

Allowed with conditions

Allowed with the same state license and taxes. Local zoning decides: Rapid City and unincorporated Pennington County register or license vacation homes, Sioux Falls issues a $50 permit, and Deadwood allows vacation homes only in commercial zones with a conditional use permit.1,21,22,23,24

A room in your home with you present

Allowed with conditions

A home the owner occupies during the rental falls outside the state's vacation home definition. Lodging taxes still apply to stays under 28 nights, and an owner-run bed and breakfast with family-style meals registers with the Department of Health for $38.1,10,11,16

Unincorporated land in Pennington County

Allowed with conditions

A county vacation home rental license is required ($150 for three years), with at most five bedrooms and 14 guests; industrial zones and floodways are excluded.21

A house in a Deadwood residential zone

Not allowed

Deadwood prohibits transient commercial use of residential property, with one exception: 14 days or fewer in August around the Sturgis Motorcycle Rally.24

Permit

Do You Need a License for Airbnb in South Dakota?

Yes. South Dakota hosts need the Lodging establishment license from the South Dakota Department of Health, Office of Health Protection. It costs $170 in the first year (A one-home host pays $170 to the state in the first year ($100 initial fee, $45 license, $25 inspection) and $70 a year after that, before any city or county permit.) and $70 a year to renew.1,3,4,5,6,7,15

Who needs it
Owners of a home, cabin or similar building rented in its entirety to the public on a daily or weekly basis for more than 14 days in a calendar year while no owner or manager is present.1,3,4,5,6,7,15
Issued by
South Dakota Department of Health, Office of Health Protection
Valid for
Calendar year: the license must be renewed each year on or before December 31.
On listings
No number needed on listings
Platform checks
The state license is posted at the property rather than shown on the listing. Rapid City requires its city registration number in every listing or advertisement.

Fees

Fees
FeeAmount
Initial license feeCharged once when a new lodging establishment is first licensed.$100
Annual license fee (vacation home)Statutory annual fee for a vacation home establishment; the license runs on the calendar year.$45
Inspection feeThe department inspects each lodging establishment at least once a year and charges $25 for each inspection.$25
Sioux Falls residential rental permitCity permit fee for each rental address, in effect since July 1, 2024; waived for new construction permitted before a tenant moves in.$50
Pennington County vacation home rental licenseCounty license for rentals in unincorporated Pennington County.$150

Who qualifies

  • The home is rented in its entirety and not occupied by an owner or manager during the rental
  • The home passes a Department of Health on-site inspection under the vacation home rules
  • A smoke detector in each sleeping room, an operable egress window in each sleeping room and a 2-A fire extinguisher on each floor, tagged annually
  • Local zoning and any city or county permit must also allow the use

How to apply

  1. Check zoning and permit rules with the city or county planning office for the property address.
  2. Complete the Lodging Facility License Online Application on the Department of Health website and pay the fee.
  3. Email the plan review questionnaire to the regional health protection advisor if the building will be built or altered.
  4. Schedule the Department of Health on-site inspection; the license is issued only after the inspection is passed.
  5. Post the license at the property, then apply for the state sales tax license and any city or county registration, which often asks for a copy of the state license.

Applications go through the South Dakota Department of Health, Office of Health Protection application portal .

Permit rules

State lodging license for whole-home rentals
A home rented whole for more than 14 days a year, with no owner or manager present, is a vacation home establishment and needs a Department of Health lodging license before it opens to guests.1,3,15
Bed and breakfast registration
An owner-run bed and breakfast with at most five rental units and family-style meals registers with the Department of Health for a one-time fee of $38.10,11
State license fees
A new vacation home pays a one-time $100 initial fee, a $45 annual license fee and a $25 inspection fee, so $170 in the first year and $70 a year after that.4,5,6
Renew by December 31 each year
The state lodging license is annual and must be renewed on or before December 31.3
Pennington County: license outside city limits
Since June 26, 2024 every vacation home rental in Pennington County outside an incorporated city needs a county vacation home rental license.21 Applies to: Unincorporated Pennington County · In force since June 26, 2024
Pennington County: $150 for three years
The Pennington County license costs $150 and is renewable every three years; it takes effect 21 days after approval.21 Applies to: Unincorporated Pennington County · In force since June 26, 2024
Rapid City: annual registration
Since January 9, 2026 vacation homes inside Rapid City limits must be registered with the city every year; each home rented separately is registered on its own.12,22 Applies to: Rapid City · In force since January 9, 2026
Rapid City: state license goes with the application
A Rapid City registration application must include a copy of the current state lodging license for a vacation home establishment.12,22 Applies to: Rapid City · In force since January 9, 2026
Rapid City: registration number in every listing
Every listing or advertisement for a registered Rapid City vacation home must show the city registration number.12 Applies to: Rapid City · In force since January 9, 2026
Sioux Falls: rental permit before advertising
Since January 1, 2024 every short-term rental address in Sioux Falls needs a city residential rental permit, issued before the unit is advertised or occupied.13,23 Applies to: Sioux Falls · In force since January 1, 2024
Sioux Falls: $50 per address and a two-hour course
The Sioux Falls permit costs $50 per address from July 1, 2024, and the applicant completes a two-hour course unless a licensed property manager runs the unit.13,23 Applies to: Sioux Falls · In force since July 1, 2024
Deadwood: city rental license on top of the permit
A Deadwood operator also needs a city short-term rental license, a city business license, the state lodging license and sales tax license, and enrollment in the Business Improvement District tax.24 Applies to: Deadwood

Who can host

What South Dakota Cities and Counties Can and Can't Regulate

What counts as a vacation home
The state definition has two tests: the home is rented in its entirety, and no owner or manager is there during the rental. The threshold is more than 14 days a year.1
Host-present rentals sit outside the vacation home category
A home the owner or manager occupies during the rental is not a vacation home establishment, but the wider state definition of a lodging establishment covers sleeping accommodations furnished for pay to two or more transient guests, and the lodging taxes still apply.1,16
Cities and counties set zoning and permits
Cities and counties write their own zoning and permit rules for short-term rentals. Deadwood, for example, prohibits transient commercial use of residential property, while Spearfish has no short-term rental rules.24,25
Rapid City: more than five bedrooms needs a conditional use permit
A Rapid City vacation home with more than five bedrooms must also hold a conditional use permit.12 Applies to: Rapid City · In force since January 9, 2026
Deadwood: vacation homes only in commercial zones
Deadwood allows vacation homes only in its Commercial and Commercial Highway zones, and only with a conditional use permit that is reviewed every year.24 Applies to: Deadwood
Spearfish: no short-term rental rules
The City of Spearfish does not regulate short-term rentals; a task force and an August 2024 open house gathered input on possible rules.25 Applies to: Spearfish

Local rules

Local Rules in South Dakota's 5 Largest Airbnb Markets

A state license doesn't replace local rules. Cities and counties still set registration, occupancy, parking and safety requirements. These are South Dakota's largest markets by active Airbnb listings, with the share of each market's listings that display a registration or license number.

The largest markets and how each registers rentals
MarketLocal registration
Rapid City Pennington CountyRequired
Sioux Falls Minnehaha CountyRequired
Deadwood Lawrence CountyRequired
Spearfish Lawrence CountyNone
Lead Lawrence CountyRequired

  1. 1. Rapid City

    Pennington County

    Rapid City requires an annual registration for any home rented whole for more than 14 days a year in stays of 28 nights or fewer, effective January 9, 2026. Hosts submit a copy of the state lodging license, limit guests to two per bedroom plus two, and show the city registration number in every listing.12,22

    • Annual city registration required since January 9, 2026; each separately rented home is registered on its own
    • A copy of the state lodging license goes with the application
    • At most 2 people per bedroom plus 2 more; children count
    • More than 5 bedrooms needs a conditional use permit

  2. 2. Sioux Falls

    Minnehaha County

    Sioux Falls requires a residential rental permit for every short-term rental unit, issued before the unit is advertised or occupied, at $50 per address. Applicants show a state sales tax license and a state lodging license and finish a two-hour course unless a licensed property manager runs the unit.13,23

    • City permit required for each rental address since January 1, 2024
    • $50 permit fee per address from July 1, 2024
    • Proof of state sales tax license and state lodging license
    • Two-hour course unless a licensed property manager runs the unit

  3. 3. Deadwood

    Lawrence County

    Deadwood prohibits transient commercial use of residential property. Vacation homes are allowed only in Commercial and Commercial Highway zones with a conditional use permit reviewed every year, and operators need a city short-term rental license and a business license on top of the state lodging and sales tax licenses.24

    • Vacation homes only in Commercial and Commercial Highway zones, with a conditional use permit
    • Conditional use permits are reviewed every year
    • City short-term rental license and business license required
    • Enrollment in the Business Improvement District tax

  4. 4. Spearfish

    Lawrence County

    Spearfish does not regulate short-term rentals at present. The city formed a task force in early 2024 and held an open house in August 2024 to gather input on possible rules, so state licensing and tax rules are the main requirements today.25

    • No city short-term rental permit or registration
    • Task force formed in early 2024 to study possible rules
    • Open house and online survey held in August 2024
    • State lodging license and taxes still apply

  5. 5. Lead

    Lawrence County

    Lead runs a short-term rental application and inspection program: the city publishes an application, an ordinance packet and a safety inspection checklist covering smoke detectors, egress windows and fire extinguishers. Commissioners advanced an amended ordinance in March 2026 that allows up to three valid complaints in a 12-month license period.26,27,29

    • City application and ordinance packet required for short-term rentals
    • City inspection checklist: smoke detector in each sleeping room and adjoining hallways
    • Egress window in every sleeping room and a fire extinguisher on each floor
    • March 2026 amendment: up to three valid complaints per 12-month license period

Taxes

South Dakota Short-Term Rental Taxes

About 8.7% on the room price in a city with the usual 2% city sales tax and 1% gross receipts tax (4.2% state, 2% city, 1% gross receipts, 1.5% tourism); 9.0% from July 1, 2027, when the state rate returns to 4.5%.

8.7% in all

How the 8.7% on a South Dakota stay splits between the taxes in the table below

  • State sales tax 4.2%
  • Municipal sales tax 2%
  • Tourism tax 1.5%
  • Municipal gross receipts tax 1%
South Dakota Short-Term Rental Taxes
TaxRateCollected by
State sales tax 4.2% of the room price until June 30, 2027; 4.5% from July 1, 20274.2%16,18,28Airbnb
Tourism tax 1.5% of the room price, including cleaning fees1.5%17,28Airbnb
Municipal sales tax 1% to 2% by city; 2% in Rapid City, Sioux Falls, Lead, Custer, Sturgis, Spearfish, Hill City, Deadwood and Hot Springs2%19,28Airbnb
Municipal gross receipts tax 1% of lodging receipts in cities that impose it, in addition to the municipal sales tax1%19,28Airbnb
Deadwood Business Improvement District tax Set by the city; Deadwood short-term rental operators enroll through the City Finance Office—24Host

What the host still handles

  • A South Dakota sales tax license from the Department of Revenue for each place of business (Sioux Falls accepts proof that a third party remits the tax)
  • The Department of Health lodging license for vacation homes rented more than 14 days a year
  • Local registration or permit where required: Rapid City registration, Sioux Falls residential rental permit, Pennington County vacation home rental license, Deadwood conditional use permit and short-term rental license
  • Deadwood Business Improvement District enrollment for Deadwood rentals16,17,18,19,20,28

Operating rules

Operating Rules for South Dakota Short-Term Rentals

Health inspection before licensing
The Department of Health inspects the home on site before it issues the license, and inspects licensed lodging at least once a year.6,15
Smoke detectors and egress windows
Each sleeping room needs a smoke detector (battery units tested at least twice a year) and an operable egress window, unless the room has a direct exit to the outside.7
Fire extinguisher on each floor
A portable fire extinguisher rated at least 2-A must be available on each floor and be inspected and tagged every year.7
State sales tax license
Lodging accommodations must hold a South Dakota sales tax license for each place of business. Renting a sleeping accommodation for 10 days or fewer in a calendar year counts as casual and is not subject to sales tax.16,17
Pennington County: five bedrooms, 14 guests
A county-licensed vacation home may have at most five bedrooms and 14 guests, or fewer if the onsite wastewater system allows fewer.21 Applies to: Unincorporated Pennington County · In force since June 26, 2024
Rapid City: two guests per bedroom plus two
A Rapid City vacation home may house at most two people per bedroom plus two more, and children count toward the limit.12 Applies to: Rapid City · In force since January 9, 2026

Fines

How to Avoid Airbnb Fines in South Dakota

Fines in South Dakota fall on hosting without the Lodging establishment license, or outside the rules above. With it in hand and the rules followed, none of the fines below apply.

  • Operating a lodging establishment without a valid state license is a Class 2 misdemeanor, punishable by up to 30 days in county jail or a $500 fine, or both; the Department of Health can also order the property closed 14 days after notice.2,8,9
  • Unincorporated Pennington County: $200 a day for advertising a vacation home rental without a license and $250 a day for breaking the county's vacation home rental rules, counted from the date of notice.21
  • Rapid City: each day an unregistered or noncompliant vacation home keeps operating is a separate offense under the city's general penalty, the city can revoke the registration and seek a court injunction.12
  • Sioux Falls: allowing occupancy of, advertising or letting a rental without a permit has been subject to the city's penalty provisions since July 1, 2024, and a permit can be revoked after a fourth code violation within three years.13,23

Changes

What's Changed in South Dakota's Airbnb Rules, and What's Next

One change is scheduled after November 4, 2026; the most recent rules are listed first.

  1. July 1, 2027 Upcoming
    State sales tax returns to 4.5%

    The 2023 cut to 4.2% repeals on June 30, 2027, so the state rate goes back to 4.5% on July 1, 2027 and the total on a typical city stay rises from about 8.7% to 9.0%.18

  2. July 1, 2026
    Counties may add a gross receipts tax

    Under Senate Bill 96 counties may impose a gross receipts tax of up to 0.5% on goods and services, with the money used to cut owner-occupied property taxes.20

  3. March 2026
    Lead amends its short-term rental ordinance

    Lead commissioners approved the first reading of an amended ordinance in March 2026 that allows each licensed rental up to three valid complaints in a 12-month license period before the license can be suspended or revoked.29

  4. January 9, 2026
    Rapid City registration required

    Vacation homes inside Rapid City limits must be registered with the city every year from January 9, 2026.22

  5. December 2, 2025
    Rapid City adopts vacation home ordinance

    The Rapid City council voted eight to two for Ordinance 6698, which adds vacation homes to the zoning code and requires annual registration.12,31

  6. July 1, 2024
    Sioux Falls $50 permit fee and penalties

    The $50 per-address permit fee and the penalties for renting or advertising without a permit began on July 1, 2024.13

  7. June 26, 2024
    Pennington County vacation home rental license

    Vacation home rentals outside incorporated cities in Pennington County need a county license from June 26, 2024.21

  8. March 2024 Lapsed
    Bill to bar local short-term rental bans dies

    House Bill 1149 would have barred cities and counties from prohibiting vacation homes and limited their rules to fire and building codes, health, traffic, waste and an emergency contact. It died on a 7-5 committee vote, reported in March 2024.14,30

  9. January 1, 2024
    Sioux Falls permit covers short-term rentals

    From January 1, 2024 all owners and managers of long- and short-term rental units in Sioux Falls need a city permit.23

  10. November 21, 2023
    Sioux Falls rental permit ordinance passed

    The Sioux Falls council passed Ordinance 109-23, which folded short-term rental units into the city's residential rental permit.13

  11. July 1, 2023
    State sales tax cut to 4.2%

    The state sales and use tax rate dropped from 4.5% to 4.2% on July 1, 2023 under House Bill 1137, which also repeals the cut on June 30, 2027.18

Earnings

What Could a Short-Term Rental in South Dakota Earn?

The rules shape the numbers: a license that costs $170 in the first year and taxes of 8.7% that Airbnb adds to guests' bills. For a specific address, the Airbnb profit calculator estimates revenue, occupancy and nightly rate from comparable listings, so you can test the numbers before applying.

Estimate what a home could earn

FAQ

South Dakota Short-Term Rental Laws: Frequently Asked Questions

Is Airbnb legal in South Dakota?

Yes. Short-term rentals are allowed statewide; a home rented whole for more than 14 days a year while no owner or manager is present needs a Department of Health lodging license, and cities and counties add their own permits and zoning.1,15

Do I need a permit for Airbnb in South Dakota?

For a whole-home rental above 14 days a year, yes: the state lodging license and a state sales tax license, plus any local permit such as Rapid City's registration, Sioux Falls's $50 rental permit or Pennington County's $150 license outside city limits.1,16,21,22,23

How much is the South Dakota lodging license?

A new vacation home pays a one-time $100 initial fee, a $45 annual license fee and a $25 inspection fee, so $170 in the first year and $70 a year after that.4,5,6

Can I rent a home I don't live in?

Yes. The state vacation home category is built for homes with no owner or manager present, and the same state license and taxes apply. Zoning decides where: Deadwood allows vacation homes only in commercial zones with a conditional use permit, while Rapid City and unincorporated Pennington County license them.1,21,22,24

Does Airbnb collect hotel or occupancy tax in South Dakota?

Yes. Airbnb collects state sales tax, tourism tax, municipal sales tax and municipal gross receipts tax on reservations of 27 nights or shorter, and hosts remain responsible for other state and city obligations such as licenses.28

What is the total lodging tax on an Airbnb stay in South Dakota?

About 8.7% in a city with the usual 2% city sales tax and 1% gross receipts tax: 4.2% state, 2% city, 1% gross receipts and 1.5% tourism. It rises to 9.0% on July 1, 2027, when the state rate returns to 4.5%.16,18,19

What is the fine for renting without a license in South Dakota?

Operating without the state lodging license is a Class 2 misdemeanor: up to 30 days in county jail or a $500 fine, or both. Unincorporated Pennington County adds $200 a day for advertising without a county license and $250 a day for other violations.2,8,21

Is there a limit on how many nights I can host?

The state licensing law sets no night cap; the 14-day line decides whether a home counts as a vacation home. Local rules limit guests instead, such as Rapid City's two per bedroom plus two, and stays of 28 or more consecutive nights are exempt from lodging taxes.1,12,16

Do I need the state license if I rent for 14 days or fewer a year?

No. The state vacation home category starts above 14 days a year. Renting for 10 days or fewer in a calendar year is casual and not subject to sales tax, but rentals above 10 days are taxable.1,16

Can a South Dakota city ban short-term rentals?

Cities set their own zoning. Deadwood prohibits transient commercial use of residential property, with an exception of 14 days or fewer in August for the Sturgis Motorcycle Rally, while Spearfish has no rules. A 2024 bill to bar local bans died on a 7-5 vote.24,25,30

Do I need to show a registration number on my Airbnb listing?

In Rapid City, yes: every listing or advertisement must show the city registration number. The state lodging license is posted at the property rather than on the listing.2,12

Will the South Dakota sales tax rate change?

Yes. The 2023 cut to 4.2% repeals on June 30, 2027, so the state rate returns to 4.5% on July 1, 2027.18

Method

How These Rules Were Checked

Each rule on this page was checked in October 2026 against the official source cited beside it: the ordinance or statute, the permit office's own pages and the tax authority. Airbnb's help pages are cited on their own only for what Airbnb itself does, such as the taxes it collects and the permit checks it runs, and otherwise only beside an official source; news reports only for when a change was announced. Rules that could not be confirmed on an official page are left out. The Rapid City and Sioux Falls municipal codes and the 2024 House Bill 1149 text were read in a browser; the Sioux Falls permit page was read from an Internet Archive copy dated March 9, 2025.

Rules change with council votes, court rulings and new state laws, so the page is rechecked every three months and whenever a scheduled change takes effect. It summarizes the rules for information and is not legal advice; the state agency and your city or county has the final word on any application.

Sources

Sources

Each rule above links to the source it comes from. Official ordinances, statutes and government pages come first, then Airbnb's own help pages.

  1. 1. SDCL 34-18-1 Definition of terms · South Dakota Legislature
  2. 2. SDCL 34-18-9 License required to operate lodging or food service establishment or campground · South Dakota Legislature
  3. 3. SDCL 34-18-10 Annual license required--Renewal · South Dakota Legislature
  4. 4. SDCL 34-18-11 Annual fees for food service and lodging establishment licenses · South Dakota Legislature
  5. 5. SDCL 34-18-10.4 Initial license fee for lodging establishment · South Dakota Legislature
  6. 6. SDCL 34-18-25.1 Inspection of lodging establishments--Fee · South Dakota Legislature
  7. 7. SDCL 34-18-22.3 Fire safety standards for vacation home establishments · South Dakota Legislature
  8. 8. SDCL 22-6-2 Misdemeanor classes and penalties · South Dakota Legislature
  9. 9. SDCL 34-18-10.2 Notice--Closure order on failure to secure license · South Dakota Legislature
  10. 10. SDCL 34-18-9.1 Definition of terms related to bed and breakfast establishments · South Dakota Legislature
  11. 11. SDCL 34-18-9.3 Registration of bed and breakfast establishment--Fee · South Dakota Legislature
  12. 12. 17.50.410 Vacation homes · Rapid City Municipal Code
  13. 13. 150.177 Permit requirements · Code of Ordinances of Sioux Falls
  14. 14. 2024 House Bill 1149 · South Dakota Legislature
  15. 15. Lodging Licensure and Codes · South Dakota Department of Health
  16. 16. Hotels, Motels and Campgrounds (June 2026) · South Dakota Department of Revenue
  17. 17. Tourism Tax (April 2025) · South Dakota Department of Revenue
  18. 18. Department of Revenue Updates Tax System for Decrease in State Tax Rate · South Dakota Department of Revenue
  19. 19. Municipal Tax Guide (July 2026) · South Dakota Department of Revenue
  20. 20. Tax Guide for County Officials (July 2026) · South Dakota Department of Revenue
  21. 21. Vacation Home Rental License · Pennington County Planning Department
  22. 22. Current Planning (vacation home registration) · City of Rapid City Community Development
  23. 23. Residential Rental Permit · City of Sioux Falls
  24. 24. Short Term Rental Information · City of Deadwood Planning and Zoning
  25. 25. Short-Term Rentals · City of Spearfish
  26. 26. Short Term Rental Inspection Checklist · City of Lead
  27. 27. Short Term Rental Ordinance Packet · City of Lead
  28. 28. Occupancy tax collection and remittance by Airbnb in South Dakota · Airbnb Help Center
  29. 29. Lead revises short-term rental ordinance · Black Hills Pioneer
  30. 30. Short-term rentals still a puzzle in South Dakota · Brookings Register
  31. 31. Rapid City Council votes to regulate vacation home rentals · KOTA Territory News