South Dakota Income Tax Calculator 2026

South Dakota has no state income tax. See how SD compensates with other taxes and what it means for your finances.

By Konstantin Iakovlev · Updated October 19, 2026 · Methodology

$
Deduction

Federal Income Tax

$7,670.00

Effective Tax Rate

10.23%

Marginal Tax Rate

22%

FICA (SS + Medicare)

$5,737.50

Total Tax Burden

$13,407.50

After-Tax Income

$61,592.50

Tax Calculation Breakdown

Gross Income$75,000.00
Above-the-Line Deductions- $0.00
Adjusted Gross Income (AGI)$75,000.00
Standard Deduction- $16,100.00
Taxable Income$58,900.00
10% on $0.00 – $12,400.00$1,240.00
12% on $12,400.00 – $50,400.00$4,560.00
22% on $50,400.00 – $105,700.00$1,870.00
Federal Income Tax (before credits)$7,670.00
Federal Income Tax (after credits)$7,670.00
Social Security (6.2%)$4,650.00
Medicare (1.45%)$1,087.50
Total FICA$5,737.50
Total Tax$13,407.50
After-Tax Annual Income$61,592.50
Monthly Take-Home$5,132.71

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

South Dakota Income Tax Overview

South Dakota is one of a small group of states with no personal income tax, and it has never enacted one in its history. No wages, salary, freelance income, pension, IRA withdrawal, or capital gain is taxed at the state level. There is no South Dakota individual return to file, no state withholding schedule, and no state form for residents to report their earnings. The South Dakota Department of Revenue collects sales and use tax and other levies, but it administers nothing on personal income.

What this does not erase is the federal layer. Every South Dakota resident still owes federal income tax to the IRS on the same progressive brackets used nationwide, plus payroll taxes on wages. The absence of a state tax simply means your total income-tax bill ends where the federal figure ends, instead of having a second percentage stacked on top. Retirees notice this sharply, since Social Security, pensions, and 401(k) distributions all escape state taxation in South Dakota even when the IRS taxes part of them. The state also levies no estate or inheritance tax, which is part of why it has grown into a popular trust jurisdiction.

State Income Tax

0%

South Dakota has no state income tax

South Dakota Tax Snapshot

State Sales Tax 4.20%
Avg. Combined Sales Tax (with local) 6.11%
Avg. Property Tax 1.00%
Minimum Wage $11.85/hr

Official Sources:

South Dakota Income Tax FAQ

Does South Dakota have any state income tax at all?
No. South Dakota levies no tax on personal income, including wages, self-employment earnings, interest, dividends, capital gains, pensions, or Social Security benefits. The state has never adopted an individual income tax, so there is no state return and no state withholding. Your income-tax obligation is entirely federal, owed to the IRS.
If I move to South Dakota, will my federal taxes change?
No. Federal income tax is set by the IRS and applies identically in all fifty states, so relocating does not lower your bracket or rate. The savings from moving to South Dakota come entirely from shedding your former state's income tax, not from any change to the federal figure. One trade-off is that you can no longer claim a federal deduction for state income tax you no longer pay.
Does South Dakota tax retirement income or Social Security?
No. Pensions, 401(k) and IRA withdrawals, annuities, and Social Security benefits are all free of South Dakota state tax, which is a common reason retirees settle there. The federal government may still tax a portion of these depending on your total income, but no second state tax is added on top. There is also no South Dakota estate or inheritance tax on what you leave behind.
I work remotely from South Dakota for an out-of-state company. Do I owe state income tax?
South Dakota will not tax that income because it has no income tax. Whether another state can reach it depends on that state's sourcing rules and where the work is physically performed; a few states tax nonresidents on work done within their borders or apply convenience-of-the-employer rules. Living and working from South Dakota generally keeps your earnings outside any state income tax, but your employer's home state can occasionally complicate that.

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