How South Dakota taxes wages
South Dakota has no personal income tax.
South Dakota is one of 9 states with no tax on wages, along with Alaska, Florida, Nevada, New Hampshire, Tennessee, Texas, Washington, and Wyoming.
Example: $65,000 salary, single filer
On a $65,000 salary, South Dakota state income tax is $0. You still pay federal income tax and FICA (Social Security and Medicare).
Calculators for South Dakota
- Paycheck calculator
Take-home pay after federal income tax, Social Security, and Medicare, with South Dakota selected: no state income tax to withhold.
- Tips and overtime calculator
Your federal deduction for qualified tips and overtime, with South Dakota selected. The savings are federal only, since South Dakota doesn’t tax wages.
- Senior deduction calculator
A federal deduction of up to $6,000 for each person 65 or older, after the income phase-out.
- Car loan interest calculator
A federal deduction for interest on a loan for a new, U.S.-assembled vehicle.
Does South Dakota tax tips and overtime?
South Dakota doesn’t tax wages, so tips and overtime aren’t subject to state income tax either. The federal deduction for qualified tips and overtime (Schedule 1-A) still lowers your federal income tax.
Source: South Dakota DOR: taxes for individuals. Checked . See how every state treats tips and overtime
South Dakota vs. neighboring states
Wyoming also has no tax on wages. Across the border in North Dakota, Iowa, Nebraska, Montana, and Minnesota, the same $65,000 salary would owe up to $2,932 (Minnesota).
| State | Est. tax on $65,000 | vs. South Dakota |
|---|---|---|
| Wyoming | $0 | Same |
| North Dakota | $8 | +$8 |
| Iowa | $1,858 | +$1,858 |
| Nebraska | $2,252 | +$2,252 |
| Montana | $2,543 | +$2,543 |
| Minnesota | $2,932 | +$2,932 |
Frequently asked questions
Does South Dakota have a state income tax?
No. South Dakota doesn’t tax wages, so no state income tax is withheld from your paycheck in 2026. South Dakota has no personal income tax.
You still pay federal income tax, Social Security, and Medicare on your wages. The paycheck calculator with South Dakota selected shows your take-home pay after those.
Official source
For forms, exact brackets, and filing deadlines, go to the official South Dakota tax agency website.