Your hub for South Dakota taxes: no state income tax, plus free calculators for take-home pay, self-employment tax, quarterly estimates, and salary conversion.
Last updated: May 2026 · Data: IRS, BLS, South Dakota Department of Revenue
In South Dakota, the only taxes withheld from a typical paycheck are federal income tax and FICA (Social Security and Medicare), because there is no broad state income tax on wages. South Dakota has no state income tax and no corporate income tax. The state relies on sales tax and tourism-related revenue. Combined with low property taxes, South Dakota is consistently ranked among the most tax-friendly states.
| Tax | 2026 Rate / Detail |
|---|---|
| South Dakota State Income Tax | No state income tax |
| South Dakota State Sales Tax (base) | 4.2% |
| Federal Income Tax | 10% to 37% (progressive brackets) |
| Social Security | 6.2% on first $176,100 |
| Medicare | 1.45% on all wages (plus 0.9% above $200,000) |
| Federal Standard Deduction (Single / MFJ) | $15,000 / $30,000 |
| Minimum Wage | $11.50 / hour |
| State Tax Authority | South Dakota Department of Revenue |
No. South Dakota is one of the nine states with no broad state income tax on wages. South Dakota has no state income tax and no corporate income tax. The state relies on sales tax and tourism-related revenue. Combined with low property taxes, South Dakota is consistently ranked among the most tax-friendly states.
Because South Dakota has no state income tax, the taxes withheld from a typical paycheck are federal income tax, Social Security (6.2% up to $176,100), and Medicare (1.45%). Use the take-home pay calculator to estimate your net pay.
South Dakota has no state income tax, so self-employment income is not subject to state income tax. Self-employed workers still owe federal self-employment tax (15.3%) and federal income tax. See the self-employment tax calculator above.
Yes, for federal taxes. Even without state income tax, self-employed South Dakota residents who expect to owe federal tax generally make quarterly estimated payments to the IRS. The quarterly tax calculator estimates the amounts and due dates.
The South Dakota statewide base sales tax rate is 4.2%. Local jurisdictions may add their own rates.