South Dakota has no state income tax
South Dakota is one of nine states that do not tax wages. Your employer withholds only federal income tax, Social Security and Medicare, so a South Dakota paycheck is usually several percent larger than the same salary in a state with an income tax.
- South Dakota has no personal income tax, so only federal taxes come out of a South Dakota paycheck.
- The state relies mainly on sales tax instead.
The other states without a tax on wages are Alaska, Florida, Nevada, New Hampshire, Tennessee, Texas, Washington and Wyoming. If you live in South Dakota but work in a state that taxes income, that state usually taxes your wages there.
No South Dakota payroll deductions
South Dakota does not take disability, paid leave or unemployment contributions from employees. State unemployment insurance is paid by employers, so the only deductions from a South Dakota paycheck are federal taxes and anything you choose, such as 401(k) contributions or health insurance.
Local income taxes in South Dakota
South Dakota cities and counties do not tax wages.
Example: $60,000 salary in South Dakota
A single filer earning $60,000 a year, paid every two weeks, with a standard 2026 W-4 and no 401(k) or health deductions:
| Every two weeks | Per paycheck | Per year |
|---|---|---|
| Gross pay | $2,307.69 | $60,000.00 |
| Federal income tax | -$193.08 | -$5,020.00 |
| Social Security (6.2%) | -$143.08 | -$3,720.00 |
| Medicare (1.45%) | -$33.46 | -$870.00 |
| Take-home pay | $1,938.08 | $50,390.00 |
With no South Dakota income tax and no state payroll contributions, nothing at all goes to the state. All taxes together take 16% of pay. Federal withholding is the 2026 single schedule: $60,000 less the $8,600 allowance gives $51,400, taxed at $1,240 plus 12% above $19,900, or $5,020 a year.
Take-home pay in South Dakota at different salaries
Yearly take-home pay for a single filer in South Dakota, paid every two weeks, with no pre-tax deductions or local tax. For a married couple filing jointly on $120,000, take-home pay is about $100,780 a year (16% in taxes).
| Salary | South Dakota tax | Take-home per year | Per paycheck |
|---|---|---|---|
| $30,000 | $0 | $26,285 | $1,010.96 |
| $45,000 | $0 | $38,338 | $1,474.52 |
| $60,000 | $0 | $50,390 | $1,938.08 |
| $80,000 | $0 | $65,110 | $2,504.23 |
| $100,000 | $0 | $79,180 | $3,045.38 |
| $150,000 | $0 | $113,791 | $4,376.58 |
| $250,000 | $0 | $183,182 | $7,045.46 |
How the South Dakota paycheck estimate works
Federal income tax follows IRS Publication 15-T for 2026: your paycheck is annualized, an allowance for the standard deduction is taken off, the 2026 withholding schedule for your filing status is applied, and W-4 credits and extra withholding are added back per paycheck. Social Security is 6.2% of wages up to $184,500 and Medicare 1.45%, plus 0.9% on wages over $200,000.
No South Dakota income tax is calculated.
Take-home = Gross − pre-tax deductions − federal tax − Social Security − Medicare