South Dakota payroll taxes

State income tax: South Dakota has no state individual income tax; there is no SD state withholding on wages.
Local income tax: Cities and counties do not impose wage-based local income taxes on employees.
State Unemployment Insurance (SUI/UI): Employer-paid only; employees do not contribute UI from wages.
Other state programs: No statewide employee-paid disability or paid family leave taxes.
FICA (federal): Social Security and Medicare—see details below.
Federal income tax (FIT): Withheld using IRS rules and your federal Form W-4.
Pre-tax deductions: Traditional 401(k), HSA/FSA, and Section 125 premiums can reduce FIT taxable wages (and sometimes FICA).
Post-tax deductions: Roth 401(k), garnishments, union dues, charitable giving, etc., reduce net pay after taxes.

How Your South Dakota Paycheck Works

Start with gross pay for the period (salary or hourly × hours; include overtime where owed).
Subtract pre-tax items (401(k), HSA/FSA, cafeteria plans) to determine taxable wages.
Apply FICA: Social Security to the annual wage base; Medicare on all wages; Additional Medicare for high earners.
Calculate federal withholding using IRS methods and your W-4 elections (no SD state withholding).
Employer separately pays South Dakota UI—this does not reduce your paycheck.
Subtract post-tax deductions (Roth 401(k), garnishments, etc.) to reach your net pay.

South Dakota Income unemployment tax rate — 10 Years Data

Employees do not pay South Dakota Unemployment Insurance from wages. Employers contribute on a taxable wage base at new-employer or experience rates. The figures below are illustrative references; always confirm your annual rate notice.

Year	Employee UI Rate	Employee Pays?	Employer Taxable Wage Base (approx.)	New Employer Rate (typ.)	Experienced Employer Rate Range (approx.)
2016	0%	No	$15,000	~2.0%–2.7%	~0.1%–8.0%
2017	0%	No	$15,000	~2.0%–2.7%	~0.1%–8.0%
2018	0%	No	$15,000	~2.0%–2.7%	~0.1%–8.2%
2019	0%	No	$15,000	~2.0%–2.7%	~0.1%–8.2%
2020	0%	No	$15,000	~2.0%–2.7%	~0.1%–8.5%
2021	0%	No	$15,000	~2.0%–2.7%	~0.1%–8.5%
2022	0%	No	$15,000	~2.0%–2.7%	~0.1%–8.7%
2023	0%	No	$15,000	~2.0%–2.7%	~0.1%–8.9%
2024	0%	No	$15,000	~2.0%–2.7%	~0.1%–9.1%
2025	0%	No	$15,000	~2.0%–2.7%	~0.1%–9.3%

South Dakota salary threshold

South Dakota follows federal FLSA white-collar rules. Exempt status requires meeting the current federal salary threshold and applicable duties tests. If either test is not met, overtime is owed after 40 hours in a workweek.

Median Household Income — South Dakota (10 years, current dollars)

Illustrative nominal values showing trend; confirm with the latest American Community Survey for official statistics.

Year	Median Household Income
2015	$54,000
2016	$55,400
2017	$57,100
2018	$59,400
2019	$61,000
2020	$63,200
2021	$68,800
2022	$73,100
2023	$75,400
2024	$77,200

South Dakota Federal Insurance Contributions Act (FICA)

Social Security: 6.2% employee + 6.2% employer, up to the federal annual wage base.
Medicare: 1.45% employee + 1.45% employer on all wages.
Additional Medicare: 0.9% employee-only on wages above $200,000 (employer remains 1.45%).

Number of cities that have local income taxes

South Dakota does not levy municipal wage-based income taxes on employee paychecks. Your pay stub typically shows federal withholding, FICA, pre-tax benefit adjustments, and any post-tax deductions. While local governments rely on sales, property, and business taxes for revenue, those charges are not taken as employee wage taxes and do not alter standard payroll withholding.

Local income tax table (employee wage tax)

City/County	Local Income/Wage Tax	Notes
Statewide (South Dakota)	None	No municipal/county percentage-of-wages income tax on employees

South Dakota Wage and Hour Laws: Overtime, Pay Frequency

Overtime: Most non-exempt employees earn 1.5× after 40 hours/week. No statewide daily overtime rule.
Minimum wage: South Dakota sets a statewide minimum; verify the effective rate for your pay period (no state income tax does not affect wage floors).
Pay frequency: Employers must establish regular paydays (weekly/biweekly/semimonthly common) and pay wages on time; final-pay rules apply at separation.
Breaks/meals: Follow federal standards; minors and certain industries may have additional protections.

Additional South Dakota forms

Federal Form W-4 — Controls federal withholding (no SD state withholding form is required).
UI Employer Registration & Rate Notice — Set up South Dakota UI account and receive assigned SUI rate.
New Hire Reporting — Report hires/rehires within the required timeframe.
Required workplace posters — Wage/hour, unemployment, safety, and federal postings.

FAQs — South Dakota Salary Paycheck Calculator

How do I use a South Dakota Salary Paycheck Calculator to estimate net pay?

Enter gross pay and pay frequency, your federal W-4 elections, and any pre-/post-tax deductions. The calculator applies FICA and federal withholding (no SD state withholding) to estimate per-pay and annual take-home.

Why doesn’t my South Dakota paycheck show state income tax?

South Dakota has no state individual income tax, so there is no state withholding line. You’ll still see FICA and federal withholding.

Do South Dakota employees pay state unemployment insurance from wages?

No. South Dakota UI is employer-funded. Employees will not see a state UI deduction on their pay stubs.

Which form controls my paycheck withholding in a no-income-tax state?

Your federal Form W-4 controls federal withholding. There’s no state W-4 for South Dakota because SD does not tax wage income.

Does any South Dakota city take a local income tax from my paycheck?

No. Cities and counties do not impose wage-based local income taxes. Your pay stub usually lists federal, FICA, benefits, and any court-ordered deductions only.

How do bonuses and commissions get taxed in South Dakota?

They’re subject to federal supplemental withholding methods and FICA. There’s no SD state income tax. Enter bonuses as supplemental wages to apply the correct federal method.

Can I add an extra withholding amount if there’s no state tax?

Yes—on the federal side. You can request an additional federal amount per paycheck on Form W-4; preview the impact in the calculator first.

How do pre-tax benefits (401(k), HSA, FSA) affect my South Dakota paycheck?

Pre-tax benefits reduce your federal taxable wages (and sometimes FICA), increasing take-home pay. They don’t change state withholding because SD has none.

Are Roth 401(k) contributions pre-tax?

No. Roth contributions are post-tax and do not reduce federal taxable wages today. Enter them as post-tax deductions in the calculator.

How should I enter overtime and shift differentials?

Add overtime hours and rate premiums; the calculator increases gross pay and recomputes FICA and federal withholding for that pay period.

What pay frequency should I select?

Choose your employer’s schedule (weekly, biweekly, semimonthly, monthly). The tool prorates wages and withholding per period and annualizes the Social Security wage base.

Why did my net change mid-year without a raise?

You may have reached the Social Security wage base; Social Security stops for the rest of the year while Medicare continues, increasing net pay.

How are tips treated for South Dakota payroll?

Reported tips are taxable for FIT and FICA. Include them in your estimate to avoid under-withholding at the federal level.

Does Additional Medicare tax apply in South Dakota?

Yes—federally. Employees pay an extra 0.9% above $200,000 in wages; employers do not match it. The calculator adds it automatically if applicable.

Can student employees be exempt from FICA?

Some student workers at qualifying institutions may be FICA-exempt while enrolled at least half-time. If exempt, remove FICA for that job in your estimate.

How do I model a mid-year raise or promotion?

Run two scenarios—old rate for already-paid periods and new rate for remaining periods—then combine to project full-year federal taxes and take-home.

How are PTO payouts taxed?

PTO cash-outs are taxable wages for FIT and FICA. If paid separately, employers may use supplemental methods; model as supplemental wages for accuracy.

Can I claim exempt from federal withholding?

Only if you meet strict IRS criteria (e.g., no tax liability last year and none expected this year). Otherwise, choose standard W-4 settings or add a specific extra amount.

What if I work partly outside South Dakota?

Withholding generally follows where wages are earned. Another state may require withholding; your federal return and that state’s rules determine credits and filings.

How do garnishments affect my paycheck?

Enter court-ordered amounts as post-tax deductions. The calculator subtracts them after federal taxes. Federal and state limits and employer timelines apply.

How can I avoid a big balance due at year-end?

Increase federal withholding via an extra per-paycheck amount on W-4, adjust pre-tax benefits, or make estimated payments. Preview the impact in the calculator first.

Can I compare traditional vs. Roth 401(k) effects on take-home?

Yes—run a traditional (pre-tax) scenario and a Roth (post-tax) scenario to see immediate net-pay differences and long-term tax implications.

South Dakota Salary Paycheck Calculator