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South Dakota Overtime Calculator 2026

Calculate your South Dakota take-home pay including overtime. Overtime pays 1.5× your regular rate for all hours over 40 per week under federal FLSA rules.

South Dakota Income Tax Overview

South Dakota is one of nine states with no state income tax, and it also has no corporate income tax — a combination that makes it one of the most business and individual-friendly tax environments in the country. South Dakota funds its government primarily through sales taxes, property taxes, and video lottery revenue. No city in South Dakota charges a local income tax. Workers in Sioux Falls, Rapid City, Aberdeen, and every other city keep 100% of their state-level income. South Dakota also has no estate or inheritance tax, making it popular for trust and estate planning.

Here's what a single South Dakota filer keeps in 2026. On a $50,000 salary, take-home is approximately $42,165 per year ($3,514/month). At $80,000, take-home is $64,578 ($5,382/month). At $100,000, you keep $78,648 ($6,554/month). At $150,000, take-home is $113,182 ($9,432/month). The only deductions are federal income tax and FICA. No state, county, or city income tax applies.

Compared to neighboring Minnesota — which has a top rate of 9.85% and a 6.8% rate that kicks in at just $33,310 — the South Dakota advantage is among the largest state tax gaps in the country. An $80,000 earner in South Dakota takes home roughly $3,917 more per year than the same earner in Minnesota. Against Iowa (3.8% flat), South Dakota workers save approximately $2,428 annually on an $80,000 salary. Even compared to Nebraska (top rate 4.55%), South Dakota is roughly $2,936 per year better at $80,000.

Watch out: South Dakota's cost of living is well below the national average, which amplifies the effective benefit of no income tax — your dollars stretch further even before accounting for the tax advantage. One nuance: South Dakota's sales tax is 4.5% statewide with local additions, so the total sales tax rate in Sioux Falls is 6.5%. For high spenders, this partially offsets the income tax benefit, but the math overwhelmingly favors South Dakota for anyone with a typical spending-to-income ratio.

Frequently Asked Questions

Does South Dakota have a state income tax? ▾
No. South Dakota has no state income tax on wages or most forms of income.
Do South Dakota cities charge local income tax? ▾
No. No city in South Dakota charges a local income tax on wages.
How much more do I take home in South Dakota vs Minnesota? ▾
Significantly more. On an $80,000 salary, a South Dakota worker takes home roughly $4,000–$5,000 more per year than the same earner in Minnesota, which has rates up to 9.85%.
What taxes does a South Dakota employee still pay? ▾
South Dakota employees pay federal income tax and FICA — Social Security (6.2% up to $184,500) and Medicare (1.45%). No state or local income tax applies.

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