Does South Dakota have a state income tax?
No. South Dakota does not tax wages or salaries, so no state income tax is withheld from your pay and your only income taxes are federal. Here is what our 2026 data notes:
- South Dakota has no individual income tax on wages, salaries or investment income. The Department of Revenue says it 'is one of seven states that does not impose a state income tax.'
- South Dakota also has no corporate income tax, inheritance tax or estate tax.
Federal taxes for South Dakota residents in 2026
Estimated 2026 federal income tax and FICA for a single filer with wage income and the standard deduction:
| Wages | Federal income tax | Social Security & Medicare | Income after taxes | Total tax rate |
|---|---|---|---|---|
| $40,000 | $2,620 | $3,060 | $34,320 | 14.2% |
| $60,000 | $5,020 | $4,590 | $50,390 | 16% |
| $80,000 | $8,770 | $6,120 | $65,110 | 18.6% |
| $100,000 | $13,170 | $7,650 | $79,180 | 20.8% |
| $150,000 | $24,734 | $11,475 | $113,791 | 24.1% |
| $250,000 | $51,304 | $15,514 | $183,182 | 26.7% |
Federal income tax uses the same 2026 brackets everywhere; see the federal bracket table. At $100,000 of wages a single filer’s marginal rate is 22%, with no state tax on top.
How South Dakota compares with neighboring states
On a $75,000 salary, a single filer pays $0 in South Dakota income tax, tied for the lowest among the 50 states and DC. The median across all of them is $2,588.
| State | State tax on $75,000 | Effective rate | Rates | National rank |
|---|---|---|---|---|
| South Dakota | $0 | 0% | No wage tax | 1 of 51 |
| Wyoming | $0 | 0% | No wage tax | 1 of 51 |
| North Dakota | $182 | 0.24% | 0%–2.5% | 10 of 51 |
| Iowa | $2,198 | 2.93% | Flat 3.8% | 16 of 51 |
| Nebraska | $2,533 | 3.38% | 2.46%–4.55% | 24 of 51 |
| Montana | $2,877 | 3.84% | 4.7%–5.65% | 33 of 51 |
| Minnesota | $3,577 | 4.77% | 5.35%–9.85% | 48 of 51 |
Compare South Dakota with Iowa, Minnesota, Montana, North Dakota, Nebraska and Wyoming.
Other taxes to budget for in South Dakota
Without a tax on wages, the taxes that shape your budget in South Dakota are the ones on what you buy and own. Look up sales tax rates with our sales tax calculator, and include property taxes and insurance when you estimate a home payment with the mortgage calculator. Our 2026 data shows no local income taxes in South Dakota.
Among South Dakota’s neighbors, North Dakota, Iowa, Nebraska, Montana and Minnesota tax wages; on a $75,000 salary that costs a single filer up to $3,577 a year.
More 2026 tax tools
See the 2026 federal brackets and standard deduction, estimate each paycheck with the paycheck calculator, or compare income tax in every state.
Frequently asked questions
Does South Dakota have a state income tax in 2026?
No. South Dakota does not tax wages or salaries in 2026, so there is no state income tax withheld from your paycheck. You still pay federal income tax plus Social Security and Medicare, which this calculator estimates. A single filer earning $75,000 in South Dakota pays about $7,670 in federal income tax and $5,738 in FICA.
How much federal tax will I pay on $75,000 in South Dakota?
About $7,670 of federal income tax for a single filer with $75,000 in wages and the standard deduction, an effective rate of 10.2%. Social Security and Medicare add $5,738, so you keep about $61,593. A married couple earning $150,000 and filing jointly would owe about $15,340 in federal income tax.
Do South Dakota residents pay Social Security and Medicare tax?
Yes. Social Security and Medicare (FICA) are federal payroll taxes, so they apply in every state. For 2026 employees pay 6.2% for Social Security on wages up to $184,500 and 1.45% for Medicare on all wages, plus an extra 0.9% on wages above $200,000 ($250,000 for joint filers). Self-employed people pay both halves through self-employment tax.
Do South Dakota cities or counties have income taxes?
No. Our 2026 data shows no local income taxes in South Dakota, so wages are subject only to federal income tax, Social Security and Medicare. Other state and local taxes, such as sales and property taxes, still apply and can be significant for your budget.
How much do I save living in South Dakota instead of a neighboring state?
On a $75,000 salary, a single filer would pay about $3,577 a year in Minnesota income tax, compared with $0 in South Dakota. Income tax is only part of the cost of living, though: sales taxes, property taxes and housing costs differ too, so compare the full picture before moving.