The City at the Base Gate
Box Elder grew up beside Ellsworth Air Force Base on Interstate 90, east of Rapid City, and it is now one of the fastest-growing cities in South Dakota. The Census Bureau estimated about 13,900 residents in 2025, with roughly 8,900 in the Pennington County part of the city and 5,000 in the Meade County part. City officials told KOTA in 2025 that population rose 21.9 percent between 2022 and 2024, and that the Department of Revenue reported a 37.8 percent year-over-year jump in sales tax revenue for February 2025. Most households here are connected to the base in some way, as airmen, spouses, civilian employees, contractors or businesses that serve them. BOMCAS serves Box Elder clients remotely, which suits families who may move on new orders.
Rules that apply across the state are gathered in our South Dakota overview; this page is about Box Elder, its two counties and the households and businesses around Ellsworth.
Ellsworth and the B-21
Ellsworth is home to the 28th Bomb Wing and will be the first base for the B-21 Raider. In June 2026 the Air Force Secretary said the first B-21, a test aircraft to be converted to operational use, would arrive at Ellsworth in 2027, slightly ahead of the original schedule. New hangars, maintenance facilities and housing have brought construction firms, subcontractors and their crews to the area, and the population connected to the base is expected to keep growing as the new bomber replaces the B-1.
Two Counties, One Rate
- Box Elder charges a 2 percent municipal sales tax, code 037-2, on top of the state's 4.2 percent, so most purchases in the city are taxed at 6.2 percent.
- Restaurant meals, alcohol, lodging and admissions add the city's 1 percent gross receipts tax, code 037-1, for 7.2 percent, and short lodging stays add the 1.5 percent tourism tax.
- Both Pennington County and Meade County adopted the new half-percent county tax starting January 1, 2027, so the whole city moves to 6.7 percent on that date regardless of which county a business is in.
- With the state rate scheduled to rise to 4.5 percent on July 1, 2027, the general rate becomes 7.0 percent.
- The county you live in still matters for property tax: the county tax revenue funds a credit on owner-occupied homes in that county, and each county's credit will differ.
- Hotels in Box Elder's Business Improvement District No. 1 charge $2 per occupied room night.
Builders, Developers and New Businesses
Growth has brought subdivisions, apartment projects, restaurants, auto services, child care centres and retail near the interstate exits. Some new businesses are owned by military spouses or retirees, and many of the city's contractors work both in town and on the base. Every business operating in the city, including contractors and subcontractors, needs a Box Elder business licence, applied for and renewed through the city's online licensing portal.
Military Households Without a State Income Tax
South Dakota does not tax income, so an airman whose legal residence is South Dakota pays only federal tax. Many Ellsworth families, though, keep a legal residence elsewhere, have a spouse working in town or remotely, rent out a house at a previous duty station or run a small business. Those details decide whether another state expects a return.
How BOMCAS Helps in Box Elder
Box Elder clients usually start with bookkeeping for a young business, sales and excise tax filings and payroll, including certified payroll for base work. Each year we prepare business returns and household returns built around military pay, and use them for planning around PCS moves and separation. If a deployment or a busy opening left returns unfiled, begin with back taxes and late filing, and families with spouses or accounts abroad can read about cross-border tax.
Clients elsewhere in South Dakota can read our state pages on business returns, personal returns, sales and use tax, bookkeeping, payroll, tax planning, late filing and cross-border tax.
Box Elder Questions
What is the sales tax rate in Box Elder?
6.2 percent on most purchases through 2026, 6.7 percent from January 1, 2027 and 7.0 percent from July 1, 2027. Meals, drinks, lodging and admissions add 1 percent.
Is the rate different in the Meade County part of Box Elder?
No. Both Pennington and Meade counties adopted the same half-percent tax, so the rate is the same across the city.
Do I need a Box Elder business licence?
Yes. All businesses operating in the city, including contractors and subcontractors, need a city business licence.
When does the first B-21 arrive at Ellsworth?
The Air Force has said the first aircraft will arrive in 2027.
Talk to BOMCAS About Your Box Elder Taxes
In the southeast corner of the state, our Sioux Falls pages cover South Dakota's largest city, its split between Minnehaha and Lincoln counties, its own lodging tax and a workforce that commutes in from Minnesota and Iowa.
On the other side of the state, our Rapid City pages deal with Black Hills tourism taxes, the hotel improvement district, Ellsworth Air Force Base and crews working across the Wyoming line.
In eastern South Dakota near the Minnesota line, our Brookings pages cover South Dakota State University, the city's manufacturing employers, its pillow tax for larger hotels and work across the nearby Minnesota line.
In the northeast, our Aberdeen pages deal with farm cooperatives and equipment dealers, 3M and other plants, two hospitals, Northern State University, the city's hotel and downtown district taxes and jobs across the North Dakota line.
Between Lake Kampeska and Pelican Lake, our Watertown pages cover Terex and the city's other manufacturers, Lake Area Tech, lake cabin rentals, the hotel improvement district and jobs over the Minnesota border.
On the Missouri River across from Nebraska, our Yankton pages look at Avera Sacred Heart, the city's manufacturers, Mount Marty University, Lewis and Clark Lake businesses and the many households that live or work on the Nebraska side.
Along Interstate 90 in the James River valley, our Mitchell pages cover the Corn Palace and its visitors, trailer and component manufacturers, Avera Queen of Peace, two colleges and the hotel district charge.
On the James River in the centre of the eastern half of the state, our Huron pages cover the State Fair, Dakota Provisions and its growers, Hutterite colony accounts, Huron's Karen and other new American families and the city's hotel room tax.
At the mouth of Spearfish Canyon in the northern Black Hills, our Spearfish pages deal with Black Hills State, newcomers and retirees, vacation rentals, the Lawrence County tax that starts in 2027 and work over the Wyoming line.
In the state capital on the Missouri River, our Pierre pages cover public employees and retirees, statewide associations and nonprofits, Lake Oahe outfitters, two hotel districts and the Hughes County tax that begins in July 2027.
Home to the University of South Dakota, our Vermillion pages cover faculty and graduate students, international scholars, student-rental landlords, campus-area restaurants and the Clay County sales tax vote.
East of the Big Sioux on I-90, our Brandon pages speak to young families, home-based businesses, trades and homebuilders, new storefronts at the interchange and a Minnehaha County rate that stays put in 2027.
On the Lincoln County edge of the metro, our Harrisburg pages cover subdivision developers and homebuilders, landowners selling to developers, new households and Lincoln County's sales tax that begins in January 2027.
Below Bear Butte, our Sturgis pages deal with rally businesses and temporary vendors, rally-week home rentals, VA staff and veterans at Fort Meade, and the Meade County tax that starts in January 2027.
Just off I-29 in Lincoln County, our Tea pages cover manufacturers and distributors, mechanical and electrical contractors, interstate franchises, young families and the county sales tax that begins in January 2027.
Between Lake Madison and Lake Herman, our Madison pages cover Dakota State University faculty and students, technology consultants, the Manitou plant and its suppliers, lake cabin rentals and Lake County farms.
Where the Redwater meets the Belle Fourche River, our Belle Fourche pages look at cattle and sheep ranches, irrigated hay ground, bentonite haulers and mills, jobs in Montana and a Butte County that has not added a sales tax.
Tell BOMCAS about your Box Elder business or household and we will reply with next steps and what we need for a quote. Use the contact page or the form below, call 780-667-5250 or email info@bomcas.ca. All Box Elder services are on the South Dakota overview. This page is general information, not advice for your situation.