Sioux Falls
Taxable cleaning in Sioux Falls carries a 6.2% combined rate: South Dakota's 4.2% state sales and use tax plus the city's 2.0% municipal sales tax, on the Department of Revenue's chart for July 1 through December 31, 2026. Commercial cleaning is taxable in South Dakota. Residential cleaning is taxable by inference, because no state source reviewed names it and the janitorial rule doesn't separate residential from commercial.
Sioux Falls has more than one local tax on the Department of Revenue's chart, and only one of them is part of the rate on general services. This page sorts that out, covers which cleaning South Dakota taxes and the state minimum wage, and ends with what it means for your books. Payroll registration and the employee test are on bookkeeping for South Dakota cleaning businesses.
The South Dakota Department of Revenue's municipal tax rate chart, effective July 1 through December 31, 2026, lists Sioux Falls at a 2.0% municipal sales tax under code 330-2, marked as a general rate. Add the state's 4.2% and the total is 6.2%; the department doesn't publish a combined figure. The chart also shows a 1% municipal gross receipts tax under code 330-1, which applies only to alcoholic beverages, eating establishments, lodging, and admissions, and a separate 1% lodging tax under code 800-1. Neither is part of the rate on general services.
Source: South Dakota Department of Revenue, Sales & Use Tax Guide 2026-7 (July 2026)
Commercial cleaning is taxable under the state's janitorial rule, ARSD 64:06:02:40. Residential cleaning is taxable by inference: no South Dakota source reviewed names house, maid, or residential cleaning, but the janitorial rule has no residential limitation, SDCL 10-45-4 taxes services unless they are specifically exempt, and SDCL 10-45-12.1 lists no exemption for building or carpet cleaning. A janitorial business is the consumer of its supplies and equipment and pays sales or use tax on them. More is on my South Dakota sales tax page, and whether a particular job is taxable is a question for your CPA.
Source: South Dakota Administrative Rules, ARSD 64:06:02:40, Janitorial supplies and services
Source: South Dakota Legislature, SDCL 10-45-4
Source: South Dakota Legislature, SDCL 10-45-12.1
South Dakota's minimum wage is $11.85 an hour, effective January 1, 2026. The Department of Labor and Regulation has announced $12.30 for January 1, 2027, with a tipped cash wage of $6.15. This page doesn't cover any Sioux Falls city wage rule.
Source: South Dakota Department of Labor and Regulation, Minimum Wage
Collected tax on Sioux Falls work goes to a liability account, never into income. I've never liked automation that runs without anyone watching it, and a sales tax rate is a good example of why. When the tax recorded on a taxable Sioux Falls job doesn't match the 4.2% plus 2.0%, I want to know the reason, since the city's other 1% taxes aren't part of the rate on general services. Tax paid on supplies is recorded as a cost of the work, and labor goes into payroll at the wage actually paid.
I'm a bookkeeper, not a CPA or an Enrolled Agent. I keep collected tax and supplies tax recorded; whether a job is taxable, and at what rate, is a question for your CPA.
Rules checked against the sources above as of October 20, 2026. Rates and rules change; confirm current figures with the agency or your CPA.
About Figure Eight Financial
Figure Eight Financial is Dave Gordon’s bookkeeping practice for residential and commercial cleaning companies. I work with owners in Sioux Falls and across the country, and I’m a Certified QuickBooks Online ProAdvisor.
Before bookkeeping I studied computer science at Penn State and spent a career at IBM as an engineer, so I build the books as a system: data comes in once, lands in the right place, and ties back to a statement. I’m a bookkeeper, not a CPA or Enrolled Agent. I keep the books your CPA works from, and the tax decisions stay with your CPA.
Credentials and memberships reported by Figure Eight Financial.
More about DaveHow I Help
Taxable Sioux Falls work carries 6.2%, and the books keep that collected tax in a liability account, checked against the 4.2% state and 2.0% city pieces so nothing else slips in. Supplies tax is recorded as a cost and payroll at the wage actually paid. Book a short call below and show me what a Sioux Falls invoice looks like today.
The core service. Transactions recorded and categorized, every account reconciled so the books and the bank agree, and monthly reports that arrive explained, split by residential and commercial and sliceable per contract.
The full picture of how this works for a cleaning companyFor the months where nothing got entered at all. I fill in the missing periods from the ground up, pulling bank feeds, statements, and receipts until every month has a complete set of records.
How catch-up bookkeeping worksFor books that exist but can’t be trusted. I audit what’s there, fix the unreconciled accounts, duplicate transactions, and wrong categories, and tie every balance back to a statement.
How cleanup bookkeeping worksYour crews paid on time, every pay period, with each payroll run recorded in the books so labor shows up against the jobs it belongs to.
How payroll worksRecurring invoices that match your contracts, an aging report you can trust, and follow-up on slow payers handled by a process instead of your evenings. Built for net-60 commercial accounts.
How invoicing and receivables workA file built right for a cleaning company from day one, or rebuilt after the DIY version drifts, and then I teach you to run it. I’m a Certified QuickBooks Online ProAdvisor, and this is honestly my favorite part of the job.
How a proper setup worksWe start with a short call about your business and where the books stand. The first conversation doesn’t cost anything.
I take a look at what you’ve got, your QuickBooks file, your spreadsheet, whatever exists.
You get a written proposal with the price, so the decision is yours with the number in hand.
Let's Connect
Doing taxable work in Sioux Falls? Send me a recent invoice and we'll check what's landing in the tax line. The first conversation doesn't cost anything.
