South Dakota paycheck taxes at a glance
| State income tax | None on wages |
|---|---|
| Local income tax | None on wages |
| State payroll deductions | None |
| Reciprocity | None |
| Figures | Tax year 2026 |
Every paycheck also has federal income tax, Social Security (6.2% up to $184,500) and Medicare (1.45%), worked out with the same 2026 IRS figures as ourmain paycheck calculator.
Worked examples
A $52,000 salary in Sioux Falls, single, paid every two weeks
| Per paycheck | Per year | |
|---|---|---|
| Gross pay | $2,000.00 | $52,000 |
| Federal income tax | − $156.15 | − $4,060 |
| Social Security and Medicare | − $153.00 | − $3,978 |
| Take-home pay | $1,690.85 | $43,962 |
Single, paid every two weeks (26 paychecks). With no state tax, federal income tax and FICA are the only deductions, so the gap between gross and net pay is the federal amount alone.
A $95,000 household in Rapid City, married filing jointly with one child
| Per paycheck | Per year | |
|---|---|---|
| Gross pay | $3,653.85 | $95,000 |
| 401(k) at 4% | − $146.15 | − $3,800 |
| Federal income tax | − $168.62 | − $4,384 |
| Social Security and Medicare | − $279.52 | − $7,268 |
| Take-home pay | $3,059.56 | $79,549 |
Married filing jointly, 1 child, paid every two weeks (26 paychecks). The 4% 401(k) deferral and the federal child tax credit reduce federal income tax. FICA is still charged on the full salary, including the 401(k) part.
What is taken out of a South Dakota paycheck
Only federal items: federal income tax based on your Form W-4, 6.2% Social Security up to the yearly wage base, and 1.45% Medicare (plus 0.9% on wages over $200,000). There is no state withholding form to fill in. Pre-tax 401(k), HSA and health premiums still lower your federal taxable wages. Reemployment assistance tax, South Dakota’s name for unemployment insurance, is paid by the employer and never deducted from your pay.
Sales tax does the heavy lifting
The state sales and use tax rate is 4.2%. It applies to retail sales of goods, products delivered electronically and the sale of services, unless a specific exemption applies. Cities can add their own municipal sales tax on top, so the rate at the till is higher in towns than the state rate alone. Property taxes are set locally and fund schools and counties.
Living or working across the border
Most neighbours tax wages. If you live in South Dakota and commute to Minnesota, Iowa, Nebraska, North Dakota or Montana, that state taxes the wages you earn there and your employer withholds its tax. South Dakota has no reciprocal agreements because it has no income tax to trade. Wyoming is the only neighbour that also does not tax wages.
South Dakota vs. neighboring states
Take-home pay on a $75,000 salary, single, no pre-tax deductions and no local tax:
| State | Income tax | State tax + programs | Take-home |
|---|---|---|---|
| South Dakota | None on wages | $0 | $61,593 |
| North Dakota | 1.95% to 2.5% (3 brackets, 0% up to $49,575 single) | $182 | $61,411 |
| Minnesota | 5.35% to 9.85% (4 brackets) | $4,007 | $57,586 |
| Iowa | Flat 3.8% | $2,198 | $59,394 |
| Nebraska | 2.46% to 4.55% (3 brackets) | $2,533 | $59,060 |
| Wyoming | None on wages | $0 | $61,593 |
| Montana | 4.7% to 5.65% (2 brackets) | $2,877 | $58,716 |
Where you work and where you live can both matter. See paycheck calculators for every state for the full comparison.