Calculate Now

South Dakota Take-Home Pay Calculator 2026

See exactly how much of your South Dakota paycheck you keep after all taxes.

Calculator

Enter your pay details

$

South Dakota Take-Home Pay 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.

Other Calculators