The minimum wage in Watertown is $11.20/hour in 2026. See how it compares to the MIT living wage of $18.00/hour and local cost of living.
Last updated: May 2026 · Data: MIT Living Wage Calculator, C2ER, U.S. Census, BLS, IRS, state and city sources
Calculate annual, monthly, and weekly income at any hourly wage in Watertown.
The minimum wage in Watertown is the South Dakota statewide minimum of $11.20/hour. Watertown does not set a separate city minimum wage, so the South Dakota statewide minimum of $11.20/hour applies; South Dakota indexes the rate to inflation each January. The bigger question for most workers is how that compares to what it actually costs to live in Watertown. With average 1-bedroom rent near $750/month and a cost-of-living index of 77 (US average = 100), the gap between the minimum wage and a true living wage is significant.
| Benchmark (Watertown, 2026) | Hourly | Annual (full-time) |
|---|---|---|
| Applicable minimum wage | $11.20 | $23,296 |
| MIT living wage (single adult) | $18.00 | $37,440 |
| MIT living wage (family of four, one earner) | $37.50 | $78,000 |
| Federal minimum wage | $7.25 | $15,080 |
| Average rent (1-bedroom, annual) | - | $9,000 |
Living wage figures: MIT Living Wage Calculator for Codington County. Minimum wage reflects the rate applicable to most private employers in Watertown.
Watertown is a regional center in northeastern South Dakota, one of the most affordable cities in this expansion, with an economy built on manufacturing (including a major 3M plant), agriculture and food processing, healthcare, and retail serving the surrounding lakes region.
| Local Metric | Watertown (2026 estimate) |
|---|---|
| Metro population | 23,000 |
| County / jurisdiction | Codington County |
| Cost of living index (US avg = 100) | 77 |
| MIT living wage, single adult | $18.00/hour |
| MIT living wage, one earner supporting a family of four | $37.50/hour |
| Applicable minimum wage | $11.20/hour |
| Average rent, 1-bedroom | $750/month |
| Average rent, 2-bedroom | $950/month |
| Median home price | $230,000 |
| Median household income | $58,000/year |
| Combined sales tax rate | 6.5% |
| Effective property tax rate | 1.3% of value/year |
Local figures are 2026 estimates compiled from the MIT Living Wage Calculator, the C2ER Cost of Living Index, U.S. Census and Zillow housing data, and city and county sources. Verify current figures before relying on them.
The minimum wage in Watertown is the South Dakota statewide minimum of $11.20/hour. Watertown does not set a separate city minimum wage, so the South Dakota statewide minimum of $11.20/hour applies; South Dakota indexes the rate to inflation each January. A full-time worker (40 hours/week, 52 weeks) earns about $23,296 per year gross before taxes at that rate.
Not for a single adult. The MIT Living Wage Calculator estimates a single adult in Codington County needs about $18.00/hour (roughly $37,440/year) to cover basic costs. That is $6.80/hour above the applicable minimum wage, and a one-earner family of four needs closer to $37.50/hour.
At $11.20/hour, full-time work (2,080 hours/year) produces about $23,296 gross. Part-time at 30 hours/week is roughly $17,472/year. Average 1-bedroom rent in Watertown is about $750/month, or $9,000/year.
Watertown does not set a separate city minimum wage, so the South Dakota statewide minimum of $11.20/hour applies; South Dakota indexes the rate to inflation each January.
The federal minimum wage is $7.25/hour and has not changed since 2009. South Dakota has set a state minimum wage of $11.20/hour, indexed to inflation and above the federal floor, and that rate applies in Watertown.