South Dakota has no tax on wage income, the 16th lowest combined sales tax (6.11%) and a $11.85 minimum wage as of 2026.
$6,187 a year: that is roughly what a South Dakota homeowner earning $75,000 pays in state income tax ($0), sales tax on $25,000 of purchases ($1,528), property tax on a $300,000 house ($3,000) and electricity at 900 kWh a month ($1,660).
South Dakota does not tax wages. No individual income tax on wages or salaries. A worker earning $50,000 or $100,000 owes federal income tax and FICA but no South Dakota income tax. Source: Tax Foundation, rates as of January 1, 2026.
Estimated 2026 take-home pay for a single filer with no pre-tax deductions, using the federal brackets and $16,100 standard deduction, Social Security and Medicare, and South Dakota's brackets above. Open the paycheck calculator set to South Dakota to add a 401(k), change pay frequency or filing status.
| Salary | Federal tax | FICA | State tax | Take-home (year) | Per biweekly check |
|---|---|---|---|---|---|
| $50,000 | $3,820 | $3,825 | $0 | $42,355 | $1,629 |
| $75,000 | $7,670 | $5,738 | $0 | $61,592 | $2,369 |
| $100,000 | $13,170 | $7,650 | $0 | $79,180 | $3,045 |
The state rate is 4.20% and local governments add 1.91% on average, for a combined 6.11%, 16th lowest of the 50 states and D.C. (median 7.00%). A $1,000 purchase carries about $61 in sales tax at the average combined rate. Source: Tax Foundation, July 1, 2026.
The South Dakota minimum wage is $11.85 an hour, 26th highest in the country, or $24,648 a year for full-time work, $9,568 more than the federal $7.25. Source: U.S. Department of Labor, July 1, 2026.
Homeowners in South Dakota paid property taxes equal to 1.00% of home value on average, the 16th highest effective rate (median state 0.79%). On a $300,000 home that is about $3,000 a year, or $250 a month in escrow. Source: Tax Foundation (Census ACS data), 2024 data.
Residential electricity averaged 15.37¢ per kWh in July 2026, the 18th lowest of the 50 states and D.C. (median 16.09¢). A household using 900 kWh a month would pay about $138 before fixed charges. Source: U.S. EIA, July 2026 data.
South Dakota sits in the middle of its 6 neighbors on taxes, wages and power prices.
| State | Top income tax | Sales tax | Min. wage | Property tax | Electricity |
|---|---|---|---|---|---|
| South Dakota | None | 6.11% | $11.85 | 1.00% | 15.37¢ |
| Iowa | 3.8% | 6.94% | $7.25 | 1.33% | 15.99¢ |
| Minnesota | 9.85% | 8.14% | $11.41 | 1.00% | 17.45¢ |
| Montana | 5.65% | 0.00% | $10.85 | 0.61% | 14.99¢ |
| Nebraska | 4.55% | 6.98% | $15.00 | 1.44% | 13.78¢ |
| North Dakota | 2.5% | 7.09% | $7.25 | 0.92% | 13.41¢ |
| Wyoming | None | 5.39% | $7.25 | 0.53% | 14.36¢ |
South Dakota figures use statewide averages and skip credits, exemptions and local income taxes; check South Dakota revenue and labor department sites before filing or hiring.
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