South Dakota Paycheck Calculator

South Dakota Income Tax Rate

South Dakota does not levy a state individual income tax on wages. Your paycheck’s statutory layers are federal income tax and FICA, plus any voluntary deductions you elect. Payroll starts with gross pay, subtracts pre-tax benefits (traditional 401(k), Section 125 health premiums, HSA/FSA, commuter plans), then applies federal withholding using your Form W-4 and pay frequency. Supplemental wages (bonuses/commissions) follow federal supplemental methods. Because there is no South Dakota state or city wage tax, your net pay is especially sensitive to federal bracket placement and benefit choices. The table below confirms South Dakota’s 0% income-tax history across the last decade.

South Dakota Median Household Income

South Dakota’s median household income has risen across the decade, supported by healthcare, manufacturing, agriculture, retail, tourism, logistics, and public sector jobs. Pandemic disruptions slowed progress briefly, but nominal gains resumed as labor markets tightened— particularly around Sioux Falls and Rapid City. Figures below are nominal, directional benchmarks for budgeting or offer comparisons. For purchasing power, compare “real” (inflation-adjusted) dollars and weigh local costs such as housing, transportation, childcare, and healthcare. Household size, insurance coverage, and retirement contributions significantly influence take-home value. Use the statewide trend as a starting point, then refine with current county or metro estimates when evaluating relocation or negotiating compensation in South Dakota communities.

South Dakota Federal Insurance Contributions Act (FICA)

FICA applies uniformly in South Dakota. Employees pay 6.2% Social Security on wages up to the annual federal wage base (employers match) and 1.45% Medicare on all wages (also matched). High earners owe an additional 0.9% Medicare surtax above federal thresholds; employers do not match the surtax. Section 125 health premiums typically reduce both income-tax and FICA wages; traditional 401(k) reduces income-tax wages but not FICA. South Dakota pay stubs usually show separate lines for Social Security, Medicare, federal withholding, pre-tax and post-tax deductions, and year-to-date totals, making it easy to verify accuracy.

South Dakota Number of Cities with Local Income Taxes

South Dakota does not impose municipal wage income taxes. Local governments rely on other revenue sources, so payroll withholding generally includes only federal income tax and FICA—no city or county percent-of-wages tax.

How Your South Dakota Paycheck Works

Your pay starts with gross wages per period. Payroll subtracts pre-tax benefits—traditional 401(k), HSA/FSA, Section 125 health premiums, and eligible commuter benefits—to reach taxable wages. Withholding then includes federal income tax (per your W-4) and FICA (Social Security and Medicare). With no South Dakota state or local wage tax, your take-home pay depends heavily on federal brackets, FICA thresholds, and your benefit elections. Post-tax deductions—Roth 401(k), garnishments, union dues, charitable gifts—come out after taxes and don’t reduce taxable wages. Pay frequency (weekly, biweekly, semimonthly, monthly) alters cash flow timing but not annual tax owed.

South Dakota Wage and Hour Laws: Overtime, Pay Frequency

Overtime: South Dakota follows FLSA—most non-exempt employees earn 1.5× their regular rate for hours worked over 40 in a workweek; exemptions apply when duties and salary thresholds are met.
Pay frequency: Employers must set regular paydays and pay on consistent intervals; biweekly or semimonthly schedules are common. Final-pay timing and itemized wage-statement requirements apply under state and federal rules—review employer policy and any agreements for details.

South Dakota FAQs

How do I use the South Dakota Paycheck Calculator?

Enter gross pay, pay schedule, W-4 details, and pre/post-tax deductions to estimate federal withholding, FICA, and net pay.

Does South Dakota tax wage income?

No. There is no South Dakota state income tax on wages.

Do any South Dakota cities have a wage income tax?

No. Cities and counties do not levy percent-of-wages income taxes.

What taxes will I see on a South Dakota pay stub?

Federal income tax, Social Security, Medicare, plus any benefit deductions—no state or city wage tax lines.

How do 401(k) and HSA contributions affect take-home pay?

They reduce taxable wages for income tax (and often FICA for Section 125 health premiums), boosting net pay.

How are bonuses withheld in South Dakota?

Under federal rules, employers may use percentage or aggregate methods; there’s no additional state income-tax withholding.

Are tips taxable in South Dakota?

Yes. Reported tips are subject to federal income tax and FICA and must be included in payroll calculations.

Why did my federal withholding change midyear?

Updated W-4, raises, variable hours, or benefit elections can shift brackets and per-check withholding.

What is South Dakota’s minimum wage situation?

South Dakota sets a statewide minimum wage; employers must pay at least the current effective rate.

How often must I be paid in South Dakota?

Employers maintain a regular payday and consistent intervals—commonly biweekly or semimonthly—subject to wage-payment rules.