Bitcoin in South Dakota: what to know
South Dakota limits crypto ATM (kiosk) purchases: $1,000/day and $10,000 per 30 days per user. No state personal income tax, so crypto gains are not taxed by the state; federal tax still applies.
Bitcoin has one price in US dollars across the country: the price on this page is the same as on the bitcoin price in the United States page, where federal tax rules are covered in full. What differs in South Dakota is state law and tax, explained below.
Crypto ATMs in South Dakota
SB 98 (signed March 11, 2026) took effect July 1, 2026. Kiosk operators must be licensed money transmitters, and all fees are capped at 3%. Operators must fully refund fraudulent transactions, including fees, within 72 hours once the user meets the reporting conditions. Scammers often tell victims to pay through crypto ATMs: no government agency, bank or utility asks for payment in bitcoin.
Buying bitcoin in South Dakota
Exchanges and other crypto businesses serving South Dakota residents generally need a state money-transmitter license. Buying bitcoin carries no sales tax; you pay the exchange's spread and fees.
Tax on bitcoin in South Dakota
No state personal income tax, so crypto gains are not taxed by the state; federal tax still applies. Federally, the IRS treats bitcoin as property: selling, trading or spending it is a taxable event, with short-term gains (held a year or less) taxed as ordinary income and long-term gains at 0%, 15% or 20%; bitcoin received as pay or from mining is income. Exchanges and other custodial brokers report sales on Form 1099-DA: gross proceeds for sales from 1 January 2025, and cost basis for many sales from 1 January 2026. Every Form 1040 asks whether you received or disposed of a digital asset.
State bitcoin reserve
A 2025 reserve bill (HB 1202) was killed in committee. A 2026 version (HB 1155), which would let up to 10% of eligible state funds go into bitcoin, was introduced but not enacted.
Legal and tax information last reviewed October 2026. Crypto rules change quickly — check with the regulator or tax authority, or a qualified adviser, before acting. This is not tax, legal or investment advice.