South Dakota Take-Home Pay Calculator

South Dakota does not tax wages, salaries, interest, dividends, or capital gains, and individuals do not file a state income tax return. Employers in Sioux Falls, Rapid City, or Aberdeen withhold no state income tax, and there is no state withholding certificate to fill out. Only the federal W-4 matters.

The state's budget leans on a sales and use tax with an unusually broad base that reaches many services, plus property taxes and a bank franchise tax. So while your paycheck is untouched, you pay South Dakota through purchases and, if you own a home, property tax bills set by your county and school district.

With nothing owed to Pierre, the IRS is the only income tax collector. Federal rules knock the $16,100 standard deduction off a $75,000 salary, and the $58,900 left over is taxed at 10% up to $12,400, 12% on the next $38,000, and 22% on the final $8,500. The federal bill is $7,670.

The 6.2% Social Security tax costs $4,650 at this salary and the 1.45% Medicare tax $1,088. All taxes together come to $13,408, and take-home pay is $61,592, about $5,133 a month or 82.1% of gross pay. The South Dakota $75,000 salary page shows each pay period.

For hourly work, a full-time job grossing $41,600 a year leaves $35,606 after federal tax and FICA, or $17.12 for each hour. The South Dakota hourly breakdown has the weekly view.

South Dakota cities and counties do not tax income either, so Sioux Falls and Rapid City paychecks look the same as those in small towns. There is also no state disability insurance, paid family leave contribution, or employee share of unemployment insurance; employers alone pay the state's reemployment assistance contributions.

That leaves federal payroll taxes as the only mandatory deductions. Social Security stops once wages reach $184,500 for the year, and an extra 0.9% Medicare tax applies to wages above $200,000. Anything else on the stub, such as health premiums or 401(k) deferrals, is a benefit you chose.

Since the federal W-4 is the only withholding form, use it carefully. If you have two jobs or a working spouse, complete Step 2, or use the IRS withholding estimator, so federal tax is not under-withheld. Tipped and overtime workers can also enter the new federal deductions for qualified tips or overtime in Step 4(b) to reduce withholding during the year.

Living in South Dakota does not shield wages earned in another state. A Sioux Falls-area resident who works in Minnesota pays Minnesota nonresident tax on those wages, and a North Sioux City resident working in Sioux City, Iowa, owes Iowa tax. South Dakota has no income tax to credit against, so that out-of-state tax is a net cost.

Remote work runs the other way in your favor. A South Dakota resident working from home for a Minnesota employer generally owes no income tax to the employer's state for days worked in South Dakota, though a few states, such as New York, tax remote employees of in-state employers under a convenience rule.

South Dakota ties for first among the 50 states and DC for take-home pay at both $75,000 and $150,000. Against its neighbors at $75,000, a single filer keeps $182 more than in North Dakota, $2,198 more than in Iowa, $2,533 more than in Nebraska, $2,877 more than in Montana, and $3,577 more than in Minnesota. Wyoming, also free of income tax, matches South Dakota exactly.

The Minnesota gap is the one that shapes behavior around Sioux Falls, where many workers choose a South Dakota address and a South Dakota job. Compare the two on Minnesota vs South Dakota.