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Archer Medical Savings Account (MSA) in South Dakota 2026

Calculate your archer medical savings account (msa) tax savings in South Dakota. South Dakota has no state income tax, so savings come from the federal level.

South Dakota Tax Overview

State Income Tax
None
none
Sales Tax
4.2%
avg combined: 6.4%
Property Tax Rate
1.22%
Median Income
$65,964

No income or corporate tax. Popular for trusts. Moderate property taxes.

$847
Est. Total Savings
$3,850
Max Deduction
Above-the-Line
Deduction Type
22.0%
Combined Tax Rate

Archer Medical Savings Account (MSA) Savings Calculator for South Dakota

$
$

Federal Savings

$847

22% bracket

South Dakota State

$0

0% rate

Total Savings

$847

22.0% combined

At a 22.0% combined tax rate in South Dakota, every $1,000 in deductions saves you $220 in taxes.

Savings by Tax Bracket in South Dakota

10%
$500
12%
$600
22%
$1,100
24%
$1,200
32%
$1,600
35%
$1,750
37%
$1,850

South Dakota has no state income tax — savings are from federal taxes only.

Eligibility Requirements

Self-employed individuals or employees of small employers with high-deductible health plans

  • 1Must have qualifying high-deductible health plan
  • 2Self-employed or employee of small employer (50 or fewer)
  • 3No new Archer MSAs — only existing accounts

Common Mistakes to Avoid

  • !Trying to open a new Archer MSA (no longer available)
  • !Not rolling over to an HSA for better benefits
  • !Using funds for non-qualified medical expenses

South Dakota Filing Tips

No income or corporate tax. Trust-friendly laws benefit estate planning. Sales tax at 6.4% is moderate.

Required Tax Forms

Form 8853Form 1040

File these forms with your federal tax return to claim the archer medical savings account (msa).

Other Tax Deductions in South Dakota

Medical & Dental Expenses

Medical

~$3,000
est. savings

Self-Employed Health Insurance

Medical

~$5,000
est. savings

HSA Contribution Deduction

Medical

~$1,800
est. savings

Long-Term Care Insurance

Medical

~$2,000
est. savings

Medical Travel Expenses

Medical

~$800
est. savings

Flexible Spending Account (FSA)

Medical

~$900
est. savings

Medical Equipment & Devices

Medical

~$1,500
est. savings

Therapy & Counseling

Medical

~$2,000
est. savings

Archer Medical Savings Account (MSA) in Neighboring States

North Dakota

1.95% top rate (flat)

~$1,633
+786 vs South Dakota

Minnesota

9.85% top rate (progressive)

~$2,172
+1,325 vs South Dakota

Iowa

3.8% top rate (flat)

~$1,759
+912 vs South Dakota

Nebraska

5.84% top rate (progressive)

~$1,898
+1,051 vs South Dakota

Wyoming

No state income tax

~$1,500
+653 vs South Dakota

Montana

5.9% top rate (flat)

~$1,902
+1,055 vs South Dakota

Tax Calculators for South Dakota Cities

Sioux FallsRapid City

Calculate Your Full Tax Savings in South Dakota

Use our free tax calculators to optimize your entire tax return for South Dakota.

Income Tax CalculatorSouth Dakota Income TaxFull Archer Medical Savings Account (MSA) Guide

Frequently Asked Questions

How much can I save with the Archer Medical Savings Account (MSA) in South Dakota?

In South Dakota, the archer medical savings account (msa) can save you an estimated $847 per year on a $5,000 deduction. This includes $847 in federal tax savings. The national average savings is $1,500/year.

What is the South Dakota state income tax rate?

South Dakota has no state income tax, which means the archer medical savings account (msa) only provides federal tax savings for South Dakota residents. No income or corporate tax. Popular for trusts. Moderate property taxes.

Who qualifies for the Archer Medical Savings Account (MSA) in South Dakota?

Self-employed individuals or employees of small employers with high-deductible health plans. The eligibility requirements are the same whether you live in South Dakota or another state, as this is a federal tax deduction. However, your total savings will vary based on South Dakota's lack of state income tax.

What tax forms do I need to claim the Archer Medical Savings Account (MSA) in South Dakota?

To claim the archer medical savings account (msa), you need to file Form 8853 and Form 1040 with your federal return. Filing status affects your deduction limits and tax bracket.

Is the Archer Medical Savings Account (MSA) better in South Dakota than in states without income tax?

Since South Dakota has no state income tax, the archer medical savings account (msa) only reduces your federal tax bill. Residents in states with income tax get additional state-level savings. However, South Dakota residents often benefit from lower overall tax burden.

What is the standard deduction in South Dakota for 2026?

South Dakota has no state income tax, so there is no state standard deduction. The federal standard deduction for 2026 is $14,600 for single filers and $29,200 for married filing jointly.

Related Calculators

Medical & Dental Expenses in South Dakota

Avg savings: $3,000/year

Self-Employed Health Insurance in South Dakota

Avg savings: $5,000/year

HSA Contribution Deduction in South Dakota

Avg savings: $1,800/year

Long-Term Care Insurance in South Dakota

Avg savings: $2,000/year

Medical Travel Expenses in South Dakota

Avg savings: $800/year

Flexible Spending Account (FSA) in South Dakota

Avg savings: $900/year