What is different in South Dakota:
- No state income tax on wages — and no corporate income tax either.
- No local wage tax anywhere in the state.
- Federal income tax, Social Security and Medicare work exactly as in every other state.
- South Dakota funds itself mostly through sales tax (4.2% state rate plus local add-ons).
What a South Dakota paycheck looks like at six salaries
Single filer, paid every two weeks, no 401(k) or other deductions, 2026 figures. Every number below comes from the same tested formulas the calculator above uses.
| Salary | Federal income tax | Social Security + Medicare | South Dakota tax | Take-home / year | Take-home / paycheck |
|---|---|---|---|---|---|
| $40,000 | $2,620 | $3,060 | $0 | $34,320 | $1,320.00 |
| $59,000 | $4,900 | $4,514 | $0 | $49,587 | $1,907.17 |
| $79,000 | $8,550 | $6,044 | $0 | $64,407 | $2,477.17 |
| $101,000 | $13,390 | $7,727 | $0 | $79,884 | $3,072.44 |
| $131,000 | $20,174 | $10,022 | $0 | $100,805 | $3,877.10 |
| $171,000 | $29,774 | $13,082 | $0 | $128,145 | $4,928.63 |
Worked example: $70,000, married, paid monthly
Married filing jointly, paid once a month, 5% of salary to a traditional 401(k) — $291.67 a month, $3,500 a year — in South Dakota.
- Taxable income: $70,000 − $3,500 401(k) − $32,200 standard deduction (married filing jointly) = $34,300.00.
- Federal income tax on that amount: $3,620.00 a year.
- Social Security: $4,340.00; Medicare: $1,015.00. The 401(k) does not reduce these.
- South Dakota state income tax: $0.
- Take-home: $70,000 − $3,500 − $3,620.00 − $4,340.00 − $1,015.00 = $57,525.00 a year, or $4,793.75 per monthly paycheck.
Worked example: $21 an hour in South Dakota
A single worker earns $21.00 an hour for 40 hours a week: $21.00 × 40 × 52 = $43,680 a year before tax. After federal income tax ($3,062), Social Security ($2,708) and Medicare ($633), take-home is $37,277 a year — about $1,433.73 per biweekly paycheck.
South Dakota vs Iowa: $79,000
The same single worker earning $79,000, paid biweekly with no 401(k). South Dakota takes $0; Iowa's 3.8% takes $3,002 a year.
| South Dakota | Iowa (3.8% flat) | |
|---|---|---|
| Federal income tax | $8,550 | $8,550 |
| Social Security + Medicare | $6,044 | $6,044 |
| State income tax | $0 | $3,002 |
| Take-home per year | $64,407 | $61,405 |
The Iowa worker keeps $3,002 less per year than the South Dakota worker — about $115.46 per paycheck. To compare every no-tax and flat-tax state side by side, see take-home pay by state. Also see our Iowa paycheck calculator.
What South Dakota does not tax — and what it does
South Dakota has neither a personal nor a corporate income tax — one of very few states that can say both. The money comes from sales tax instead: 4.2% at the state level plus municipal add-ons. Your paycheck math is just federal tax plus FICA, and there's no local wage tax to complicate it.
What this page leaves out
Child and dependent credits, itemized deductions, health premiums, 401(k) contributions beyond the examples above, bonuses and overtime are not in the simplified calculator — the full paycheck calculator covers all of them, with South Dakota as the "no state income tax" option. For exact figures use your employer's payroll system or the IRS Tax Withholding Estimator.
Sources and review
Brackets and standard deductions come from IRS Revenue Procedure 2025-32. The Social Security wage base comes from the Social Security Administration, and the South Dakota tax facts are confirmed by the Tax Foundation's 2026 state rates. Last reviewed September 2026. See our methodology for how every figure is checked.