South Dakota Ranks #2 in the Tax Foundation's State Business Tax Climate Index 2014. The Index compares the states in five areas of taxation that impact business: corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and taxes on property, including residential and commercial property. The ranks of neighboring states are as follows: North Dakota, 28th, Minnesota, 47th, Iowa, 40th, Nebraska, 34th, Wyoming, 1st, and Montana, 7th.
Tourism is the second largest industry in South Dakota. In 2006, travelers spent nearly $865 million across the state.
The state also has a strong agricultural base. It is the largest industry in the state. South Dakota routinely ranks among the top 10 states for the production of hay, sunflowers, rye, honey, soybeans, corn, wheat and cattle.
The service sector, retail trade and manufacturing industries account for the majority of the state's employment.