South Dakota Income Tax Calculator
Calculate your total tax burden in South Dakota. See SD state income tax (no state income tax), federal tax, and FICA combined. Free, instant, private.
The state of South Dakota has no state income tax in 2026, making it one of nine no-income-tax US states. Residents only pay federal income tax (10% to 37% across 7 brackets) plus FICA (Social Security 6.2% up to $$176,100 wage base, Medicare 1.45%). Property tax averages 1.22% and combined state + local sales tax averages 6.4%. No income or corporate tax. Popular for trusts. Moderate property taxes.
South Dakota Income Tax Calculator
Pre-filled with South Dakota median: $65,964
Your Total Tax Burden
$11,172
Take-Home: $54,792 · Effective Rate: 16.9%
Federal Tax
$6,126
9.3% eff.
SD State Tax
$0
No tax
FICA
$5,046
7.6% eff.
Take-Home
$54,792
83.1% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $65,964.00 | $5,497.00 |
| Federal Income Tax | -$6,126.08 | -$510.51 |
| South Dakota State Tax | $0.00 | $0.00 |
| Social Security (6.2%) | -$4,089.77 | -$340.81 |
| Medicare (1.45%) | -$956.48 | -$79.71 |
| Take-Home Pay | $54,791.67 | $4,565.97 |
Marginal Tax Rate
0%
SD state only
Effective Tax Rate
16.9%
All taxes combined
South Dakota Tax System Overview
South Dakota has no personal or corporate income tax. Revenue from sales tax (6.4% combined). Popular for trust formation. Property taxes moderate at 1.22%.
Top Income Tax
None
Property Tax
1.22%
Sales Tax (Avg)
6.4%
Median Income
$65,964
Other Taxes in South Dakota
Capital Gains Tax
No state tax on capital gains
Property Tax
Average effective rate of 1.22%. On a $300,000 home, this equals approximately $3,660 per year, or $305 per month.
Sales Tax
State rate of 4.2%, with a combined average of 6.4% including local taxes.
Filing Tips for South Dakota
No income or corporate tax. Trust-friendly laws benefit estate planning. Sales tax at 6.4% is moderate.
- Maximize pre-tax contributions to 401(k) ($23,500 limit in 2026, $31,000 if 50+) to reduce both federal and federal taxable income.
- Use an HSA if you have a high-deductible health plan. Contributions ($4,400 individual, $8,750 family) are pre-tax and reduce your tax burden.
- Take advantage of no state income tax. Consider investing your tax savings in a Roth IRA for tax-free growth, since you already benefit from no state tax on contributions.
Compare South Dakota to Nearby States
If you lived in a neighboring state instead, here is how your state tax would change on $65,964 income:
| State | Top Rate | State Tax | Difference |
|---|---|---|---|
| South Dakota | None | $0 | — |
| North Dakota | 1.95% | $1,002 | +$1,002 |
| Minnesota | 9.85% | $3,035 | +$3,035 |
| Iowa | 3.8% | $1,952 | +$1,952 |
| Nebraska | 5.84% | $2,723 | +$2,723 |
Explore All 50 State Tax Calculators
Compare income tax rates, property taxes, and sales taxes across all US states and DC.
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Frequently Asked Questions
What is the income tax rate in South Dakota?
South Dakota has no state income tax. Residents only pay federal income tax and FICA taxes (Social Security and Medicare). This makes South Dakota one of nine states with no income tax, along with Alaska, Florida, Nevada, New Hampshire, and others.
How much state tax will I pay in South Dakota on $65,964?
You would pay $0 in state income tax in South Dakota since there is no state income tax. Your total tax burden would only include federal income tax and FICA.
Does South Dakota tax capital gains?
No state tax on capital gains. Since there is no state income tax, capital gains are not taxed at the state level either.
How does South Dakota compare to neighboring states for taxes?
South Dakota's neighboring states include North Dakota (1.95% top rate), Minnesota (9.85% top rate), Iowa (3.8% top rate). As a no-income-tax state, South Dakota is among the most tax-friendly. Use the calculator above to compare your specific tax liability across states.
What is the South Dakota state income tax filing deadline for 2026?
South Dakota has no state income tax, so there is no state filing deadline. Residents only need to file federal Form 1040 by April 15, 2026 (or October 15, 2026 with extension).
Does South Dakota tax retirement income, Social Security, and pensions?
South Dakota does not tax retirement income, Social Security benefits, or pension distributions because there is no state income tax. This makes South Dakota attractive for retirees seeking tax-friendly states alongside Florida, Nevada, Texas, Tennessee, and others.
What deductions and credits are unique to South Dakota in 2026?
Since South Dakota has no state income tax, no state-level deductions or credits apply. However, South Dakota residents can still claim federal deductions including the standard deduction ($15,000 single / $30,000 married for 2026), itemized deductions, and federal tax credits like Child Tax Credit and EITC.
If I work remotely in South Dakota for an out-of-state employer, what tax do I pay?
As a South Dakota resident working remotely for an out-of-state employer, you generally pay tax to your work-state's jurisdiction (sometimes called "convenience of employer rule"), then claim a credit on South Dakota... but since South Dakota has no income tax, there is nothing to credit. Net effect: you pay only the work-state's tax. NY, PA-Philadelphia, OH-Cincinnati apply convenience-of-employer rules — verify with employer.