Quick answer
South Dakota paycheck basics
South Dakota does not tax income from wages. The South Dakota Department of Revenue's page on individual taxes states that South Dakota does not impose a state income tax, and lists the taxes individuals do pay: alcohol, cigarette and tobacco, motor fuel, property, and sales and use taxes. A South Dakota paycheck therefore has no state income tax line, and there is no state return to file on wages.
The rest of the paycheck works like any other state's. Federal income tax, Social Security, and Medicare are withheld from every South Dakota paycheck, and the amounts depend on filing status, Form W-4 elections, pay frequency, and any pre-tax deductions taken first. South Dakota also takes nothing out of an employee's pay for state unemployment coverage: the Department of Labor and Regulation says reemployment assistance is paid by employers. This calculator applies the current federal withholding tables so hourly and salaried workers in South Dakota can see take-home pay, and it starts hourly estimates from the state's 2026 minimum wage of $11.85 per hour.
How South Dakota taxes your paycheck
South Dakota has no personal income tax, so there is no state rate, bracket, or standard deduction to apply to wages and the state income tax line on a South Dakota paycheck is always $0. The Department of Revenue's individual tax page lists the taxes it does administer for individuals: alcohol, cigarette and tobacco, motor fuel, property, and sales and use tax. It also notes that the state's inheritance tax was repealed effective July 1, 2001. No South Dakota version of Form W-4 exists and no state withholding tables are published, since there is nothing to withhold. That leaves the federal system as the entire withholding story: federal income tax under IRS Publication 15-T, Social Security, and Medicare, plus any deductions the worker chooses, such as a retirement contribution or a health premium. The one South Dakota figure that changes each year is the minimum wage, which the state adjusts every January in line with the Consumer Price Index and which is $11.85 per hour in 2026.
Worked example
A $60,000 salary in South Dakota, single, paid biweekly
- Annual salary:
- $60,000
- Filing status:
- Single
- Pay frequency:
- Biweekly (26 paychecks/year)
- Deductions:
- None
- State:
- South Dakota
- Salary: +$2,307.69
- Federal income tax: −$193.08
- Social Security: −$143.08
- Medicare: −$33.46
Net pay per paycheck: $1,938.07
Computed with South Dakota's default withholding certificate (no allowances, no extra withholding) and no pre-tax or post-tax deductions. Your own paycheck will differ with different elections.
Take-home pay by salary in South Dakota
Net pay at five common salaries, biweekly, with no bonus, tips or deductions — computed the same way as the worked example above, for Single and Married Filing Jointly.
| Annual salary | Single — per paycheck | Single — annual | MFJ — per paycheck | MFJ — annual |
|---|---|---|---|---|
| $40,000 | $1,320.00 | $34,320.00 | $1,390.77 | $36,160.02 |
| $60,000 | $1,938.07 | $50,389.82 | $2,021.92 | $52,569.92 |
| $80,000 | $2,504.22 | $65,109.72 | $2,639.99 | $68,639.74 |
| $100,000 | $3,045.38 | $79,179.88 | $3,258.07 | $84,709.82 |
| $150,000 | $4,376.58 | $113,791.08 | $4,737.89 | $123,185.14 |
How to use this calculator
- Enter your pay. Choose salary or hourly, fill in the amount and hours, and pick how often you are paid.
- Fill in your federal Form W-4. Filing status, the Step 2 checkbox, and Steps 3 and 4 if they apply to you.
- Add any deductions. Traditional or Roth 401(k), health premiums, HSA, FSA, or other pre-tax and post-tax amounts taken from your pay.
- Read your results. Net pay per paycheck, the full breakdown by category, and any warnings about your specific numbers.
Formulas used
Net pay = gross pay − pre-tax deductions − federal tax − FICA − state tax ($0) − state payroll programs − local tax − post-tax deductions.
South Dakota vs. neighboring states
Net pay on a $75,000 salary, single, paid biweekly, in South Dakota compared with its bordering states.
| State | Net pay per paycheck | Net pay annual | Difference vs. South Dakota (annual) |
|---|---|---|---|
| South Dakota | $2,368.94 | $61,592.44 | — |
| Minnesota | $2,190.96 | $56,964.96 | −$4,627.48 |
| Montana | $2,257.94 | $58,706.44 | −$2,886.00 |
| Nebraska | $2,257.19 | $58,686.94 | −$2,905.50 |
| North Dakota | $2,355.94 | $61,254.44 | −$338.00 |
| Wyoming | $2,368.94 | $61,592.44 | +$0.00 |
Frequently asked questions
How is federal income tax withheld from my paycheck calculated?+
Employers use the IRS Publication 15-T percentage method with the elections on your Form W-4: filing status, whether Step 2 is checked, Step 3 credits, and any Step 4 adjustments. That produces an amount to withhold each pay period before Social Security, Medicare, and any state or local tax are applied.
What is FICA and why is it withheld on every paycheck?+
FICA is Social Security tax (6.2% of wages up to the annual Social Security wage base) plus Medicare tax (1.45% of all wages, with an extra 0.9% on wages above $200,000 in a year). Both are withheld on every US paycheck regardless of which state you work in, because they fund federal programs rather than a state one.
Is the result on this calculator the same as my actual paycheck?+
It is an estimate for planning, not a substitute for your pay stub. Your actual withholding depends on the exact elections on file with your employer, your specific pay dates, and any mid-year changes to your deductions — the calculator applies the published federal and state formulas to the numbers you enter.
Does South Dakota have a state income tax on paychecks?+
No. The South Dakota Department of Revenue states that South Dakota does not impose a state income tax, so a South Dakota paycheck has no state income tax withholding line at any income level or filing status.
Why does my South Dakota paycheck still show federal tax withheld?+
South Dakota not taxing income only removes the state withholding line. Every paycheck in every state, including South Dakota, still has federal income tax, Social Security, and Medicare withheld under the same IRS rules.
Do South Dakota employees pay for unemployment insurance out of their paycheck?+
No. The South Dakota Department of Labor and Regulation says reemployment assistance benefits are paid by your employer through taxes on your wages, and that nothing is ever withheld from your paycheck to pay for them.
What is the minimum wage in South Dakota in 2026?+
South Dakota's minimum wage for non-tipped employees is $11.85 per hour, effective January 1, 2026, according to the South Dakota Department of Labor and Regulation. The rate for tipped employees is $5.925 per hour, effective the same date.
How does the South Dakota minimum wage change each year?+
The non-tipped minimum wage is adjusted annually, increasing at the same rate as the cost of living as measured by the Consumer Price Index published by the U.S. Department of Labor. The new figure takes effect each January 1, so the 2026 rate will not stay the same in 2027.
Is there a South Dakota state W-4 form?+
No. Because South Dakota has no state income tax, there is no state withholding certificate. Only the federal Form W-4 affects the income tax withheld from a South Dakota paycheck.
What taxes do South Dakota residents pay instead of an income tax?+
The Department of Revenue's individual tax page lists alcohol, cigarette and tobacco, motor fuel, property, and sales and use taxes. Property tax bills and the sales tax you pay in stores are the taxes most households will notice.
Does South Dakota have an inheritance tax?+
No. The Department of Revenue says South Dakota's inheritance tax was repealed effective July 1, 2001. It has no bearing on paychecks, but it is part of what the state means when it says it does not tax individual income or inheritances.
Does living in South Dakota but working in another state change my state withholding?+
It can. Whether state tax is withheld depends on the state where the work is performed and that state's rules for nonresidents, not on South Dakota having no income tax. South Dakota borders Iowa, Minnesota, Montana, Nebraska, North Dakota, and Wyoming, so check the other state's rules separately.
Are bonuses and commissions taxed differently in South Dakota?+
Not at the state level, because South Dakota has no state tax on wage income. Federally, supplemental wages such as bonuses are withheld at the flat 22% supplemental rate, and Social Security and Medicare still apply.
Sources
- South Dakota Department of Revenue — Individual Taxes
- South Dakota Department of Labor and Regulation — Reemployment Assistance FAQ
- South Dakota Department of Labor and Regulation — Minimum Wage
- U.S. Department of Labor — State Minimum Wage Laws
- IRS Publication 15-T (2026), Federal Income Tax Withholding Methods
- IRS Publication 15 (2026), Employer's Tax Guide
- Social Security Administration — 2026 COLA Fact Sheet