How South Dakota taxes your paycheck
Good news if you work in South Dakota: the state doesn't tax your wages in 2026. There's no state income tax, no city or county income tax, and no state payroll program for disability or paid leave.
Your paycheck still has federal deductions, though. Federal income tax comes out based on your W-4. Social Security takes 6.2% of wages up to $184,500, and Medicare takes 1.45%, plus 0.9% on wages over $200,000.
For example, a single person earning $50,000 in South Dakota pays $0 in state tax. They still pay $3,825 a year for Social Security and Medicare, plus federal income tax.
South Dakota tax rates and rules for 2026
South Dakota doesn't tax wages.
Local taxes
No local income tax on wages.
Frequently asked questions
Does South Dakota have a state income tax?
No. South Dakota doesn't tax wages or other personal income, so no state income tax is withheld from your paycheck.
Is there local income tax in South Dakota?
No. Cities and counties in South Dakota don't tax wages either.
What still comes out of a South Dakota paycheck?
Federal income tax, Social Security (6.2%) and Medicare (1.45%). You may also have deductions you chose, such as health insurance or a 401(k).
Does South Dakota take out money for paid leave or disability?
No. South Dakota has no state paid family leave, disability or long-term care program funded from workers' paychecks.
Sources
Figures checked 2026-10-25. The federal side uses the same 2026 rules as the main paycheck calculator, where the formula and method are explained. Found a problem? Tell us.