This free South Dakota paycheck calculator shows your 2026 take-home pay. South Dakota has no state income tax. The Department of Revenue states that plainly on its own website. So the only taxes taken from your wages are federal. Those are federal income tax, Social Security and Medicare.
No city or county in South Dakota charges an income tax either. Sioux Falls, Rapid City and Aberdeen take nothing extra from your pay. The state pays its bills with sales tax instead. That matters for your budget, so the second section covers the rate you will meet at the shops.
How South Dakota taxes your paycheck in 2026
South Dakota charges no personal income tax. There is no state return for wage earners and no state withholding line on your pay stub. That leaves three federal taxes. Federal income tax withholding comes out first. Social Security takes 6.2% of wages up to the 2026 wage base of $184,500. Medicare takes 1.45%, plus an extra 0.9% on wages above $200,000.
A single filer earning $60,000 in South Dakota keeps about $50,390 a year. That is $1,938 per biweekly paycheck. The effective total tax rate is 16.0%, and all of it is federal. Someone on the same salary in a state with an income tax would hand over a few thousand dollars more.
Unemployment insurance is an employer-only tax here by law. Your employer pays it and cannot take it out of your wages. Three states do split that cost with workers, but South Dakota is not one of them. So your gross pay minus federal tax is your net pay.
What pays for South Dakota instead
Sales tax carries the state budget. The state rate is 4.2% in 2026. That number is a temporary cut. Under current law the rate goes back up after 30 June 2027 unless lawmakers extend the cut. Watch that date if you are planning a big purchase.
Towns add their own sales tax on top of the state rate. So the amount on a Sioux Falls receipt is higher than 4.2%. South Dakota also taxes some services that other states leave alone. None of this shows up on your pay stub. It shows up every time you buy something.
Because there is no income tax, a raise here is worth its full face value at the state level. Only the federal share moves. That is a real difference from a neighboring state, where a raise pushes you up a state bracket too.
Living in South Dakota, working across the border
State income tax follows the place where you do the work. Live in South Dakota and work in South Dakota, and you owe no state income tax. Drive over the line to work, and that state can tax those wages. Your employer withholds for the state where the work happens. This catches people who change jobs without moving house.
Minnesota sits on the eastern border and its top rate is 9.85%. Nebraska taxes wages too. Iowa, Montana and North Dakota all have an income tax as well. So the state line around Sioux Falls is worth real money. Remote workers move to the South Dakota side for that reason.
Working from home changes the answer again. If your desk is in South Dakota, your wages are usually free of state income tax. That holds even when your employer sits in another state. The rules differ by state, so confirm it with your payroll team. This calculator assumes your work is done inside South Dakota.
South Dakota paycheck FAQ
- How much is $60,000 after taxes in South Dakota?
- Take a single filer with no pre-tax deductions. That worker keeps about $50,390 a year, $1,938 per biweekly paycheck, 16.0% total tax rate. All of that tax is federal. South Dakota has no state income tax and no local income tax.
- How much is $100,000 after taxes in South Dakota?
- Take a single filer with no pre-tax deductions. That worker keeps about $79,180 a year, $3,045 per biweekly paycheck, 20.8% total tax rate. That covers federal income tax, Social Security and Medicare. There is nothing to add for state or city tax.
- Does South Dakota have a state income tax?
- No. The South Dakota Department of Revenue states that the state has no personal income tax. There is no state return to file on your wages. No city or county here charges an income tax either.
- What is the South Dakota sales tax rate in 2026?
- The state rate is 4.2%. That is a temporary cut, and current law ends it after 30 June 2027 unless lawmakers extend it. Towns add their own rate on top. Sales tax is paid at the store, so it never touches your pay stub.
- Does South Dakota take unemployment money from my pay?
- No. Unemployment insurance is an employer-only tax here by law. Your employer pays it and cannot deduct it from your wages. Only Alaska, New Jersey and Pennsylvania split that cost with employees.
- I live in South Dakota but work in Minnesota. Do I pay Minnesota tax?
- Yes. State income tax follows where you do the work. Minnesota taxes wages earned at a Minnesota workplace, and its top rate is 9.85%. Nebraska taxes wages too. Only work done inside South Dakota is free of state income tax.
- Does a 401(k) help my taxes in South Dakota?
- It helps your federal tax, and there is no state tax for it to cut. Traditional 401(k) money is left out of federal taxable wages but still pays Social Security and Medicare. Payroll HSA money is left out of both. Add either one in the fields above.
Sources
- South Dakota Department of Revenue — taxes for individuals
- SD Department of Labor — unemployment insurance FAQ
- Tax Foundation — South Dakota tax data
All sources accessed and figures verified August 2026.