South Dakota Income Tax Calculator 2026

South Dakota Income Tax Calculator

South Dakota has no personal income tax and no corporate income tax. A single filer earning $80,000 owes only federal income tax, about $8,770 for 2026. The state relies on a sales tax that also covers groceries, and its rate is scheduled to rise from 4.2% back to 4.5% on July 1, 2027.

South Dakota tax data current for 2025 & 2026 · 2027 available as a projection · Updated for the One Big Beautiful Bill Act

South Dakota Income Tax at Common Salaries (2026)

Estimated annual federal income tax for a single filer, after the standard deduction. Numbers reflect the 2026 IRS tax tables. FICA (Social Security and Medicare) is not income tax — see the calculator above for full paycheck modeling.

Rate	Bracket	Income Taxed	Tax
Total Federal Income Tax	—	—

Salary	Federal Tax	Total Income Tax	Effective Rate
$40,000	$2,620	$2,620	6.6%
$60,000	$5,020	$5,020	8.4%
$80,000	$8,770	$8,770	11%
$100,000	$13,170	$13,170	13.2%
$150,000	$24,734	$24,734	16.5%
$200,000	$36,734	$36,734	18.4%

Single filer using the standard deduction. No tax credits, itemized deductions, or pre-tax adjustments.

What's different about South Dakota income tax

Nothing to file with the state

South Dakota has no individual income tax return and no state withholding. Wages, interest, dividends, capital gains, Social Security, pensions, and IRA withdrawals are all free of state income tax; only the federal return applies.

A temporary sales tax cut

The 2023 Legislature cut the state sales tax from 4.5% to 4.2% starting July 1, 2023, with a built-in end date: the statute returns to 4.5% on July 1, 2027. Cities can add their own sales tax, bringing the combined rate as high as 8.7%.

Income from other states is still taxed there

Living in South Dakota doesn't shield income earned in states that tax it. Minnesota, for example, taxes wages earned in Minnesota by nonresidents, and its reciprocity agreements cover only Michigan and North Dakota, so a Sioux Falls resident commuting across the border files a Minnesota nonresident return. South Dakota has no credit to give back because it has no tax to offset.

Groceries are taxed

Unlike most states, South Dakota applies its full state sales tax rate to groceries. For a household that spends heavily on food, that is a meaningful part of its state tax bill in place of an income tax.

Filing and paying taxes in South Dakota

State return: None. South Dakota has no individual income tax.
Federal return: Form 1040, due April 15.

To see how South Dakota sits against every other state on top rate, bracket count and standard deduction, see state income tax rates for 2026 — all 51 jurisdictions in one sortable table.

How South Dakota Income Tax Compares to Neighboring States

Total income tax (federal + state) on a $100,000 annual salary in 2026, single filer using the standard deduction:

State	State Tax	Total Income Tax	vs. South Dakota
South Dakota (here)	$0	$13,170	—
North Dakota	$669	$13,839	+$669
Minnesota	$5,277	$18,447	+$5,277
Iowa	$3,148	$16,318	+$3,148
Nebraska	$3,670	$16,840	+$3,670
Wyoming	$0	$13,170	$0

A negative "vs." figure means that state collects less total income tax than South Dakota. Federal portion is identical across states; only state tax varies.

Frequently Asked Questions

What is the South Dakota state income tax rate for 2026?

South Dakota has no state income tax on wages — the rate is 0% across all income levels. Only federal income tax applies, with brackets ranging from 10% to 37% depending on your taxable income.

How much income tax will I pay in South Dakota on a $100,000 salary?

For a single filer earning $100,000 in South Dakota in 2026, expect approximately $13,170 in federal income tax — for a total income tax of about $13,170, an effective rate of 13.2%. This excludes FICA (Social Security and Medicare), which adds roughly 7.65% on top.

Does South Dakota tax retirement income?

No. With no income tax, Social Security, pensions, and retirement account withdrawals are free of state tax.

Is the South Dakota sales tax going up?

Under current law, yes: the 2023 cut to 4.2% expires and the state rate returns to 4.5% on July 1, 2027, unless the Legislature extends it.

Does South Dakota tax groceries?

Yes, at the full state sales tax rate plus any city tax.

For the preferential federal rates on long-term gains, see the Capital Gains Tax Calculator. For the federal brackets, standard deduction, and Social Security wage base that sit underneath this state calculation, see 2026 Tax Calculators.