How Much Is South Dakota State Income Tax in 2026?
South Dakota has no income tax, no corporate income tax, and some of the lowest property taxes around — it funds government mainly through a 4.2% sales tax. Your paycheck here is reduced only by federal tax and FICA.
State income tax
0%
2026
Standard deduction
N/A
No state income tax
$100k take-home
$79,180
Single filer
$75k take-home
$61,593
Single filer
Quick Answer: South Dakota Income Tax at a Glance
South Dakota has no income tax, no corporate income tax, and some of the lowest property taxes around — it funds government mainly through a 4.2% sales tax. Your paycheck here is reduced only by federal tax and FICA.
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Why South Dakota has no income tax
South Dakota has never enacted a personal income tax. A lean state government, sales-tax revenue, and tourism dollars (plus a famous trust and banking industry in Sioux Falls) keep it that way. For a worker earning $75,000, that means roughly $2,000–$7,000 more per year in their pocket than in states that tax wages — before considering the lower cost of living.
Sales tax carries the load
The state sales tax is 4.2%, with cities adding up to about 2% more, and it applies broadly — including to groceries. Property taxes are moderate and capped by annual growth limits. None of these touch your paycheck directly, but they're the trade-off that replaces an income tax.
What still comes out of your paycheck
Only federal income tax (progressive brackets with the 2026 standard deduction) and FICA — Social Security at 6.2% up to the annual wage base and Medicare at 1.45%, plus the 0.9% Additional Medicare Tax on earnings above $200,000 for single filers. This calculator estimates both. Retirement income — Social Security, pensions, IRA distributions — is completely untaxed at the state level.
Take-Home Pay by Income Level in South Dakota
The table below shows estimated annual take-home pay for a single filer with no credits or pre-tax contributions. It includes federal income tax, FICA, and South Dakota state income tax.
| Gross Income | Federal Tax | FICA | SD State Tax | Take-Home Pay |
|---|---|---|---|---|
| $50,000 | $3,820 | $3,825 | $0 | $42,355 |
| $75,000 | $7,670 | $5,738 | $0 | $61,593 |
| $100,000 | $13,170 | $7,650 | $0 | $79,180 |
| $150,000 | $24,734 | $11,475 | $0 | $113,791 |
| $200,000 | $36,734 | $14,339 | $0 | $148,927 |
Estimated Tax Breakdown
Frequently Asked Questions
Does South Dakota have a state income tax in 2026?
No. South Dakota has never had a personal income tax, and it also has no corporate income tax. Only federal taxes reduce a South Dakota paycheck.
Does South Dakota tax Social Security or retirement income?
No. With no income tax at all, Social Security, pensions, and retirement-account withdrawals are completely untaxed at the state level.
How much is $75,000 after taxes in South Dakota?
A single filer earning $75,000 takes home about $61,593 per year after federal income tax and FICA — with $0 going to the state, tied for the highest take-home figure of any state at this salary.
What taxes does South Dakota have?
A 4.2% state sales tax (plus local additions) that applies to groceries, and moderate property taxes with capped growth. There's no income tax, no inheritance tax, and no corporate income tax.
Is South Dakota good for remote workers?
Tax-wise, yes: no income tax on wages and low overall costs. Just note that your employer's state may have its own rules for out-of-state remote workers, which is separate from South Dakota's treatment.
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Disclaimer: This guide is for informational purposes only and does not constitute tax, legal, or financial advice. Figures are estimates for a single filer with the 2026 standard deduction and no credits. Sources: IRS Revenue Procedure 2025-32 (federal brackets and deductions); SSA (FICA wage base); South Dakota Department of Revenue and Tax Foundation (state rates and context). Consult a qualified tax professional for advice specific to your situation.