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South Dakota State Income Tax Calculator

Calculate your 2026 South Dakota state income tax. See your bracket breakdown, effective rate, and how South Dakota compares to neighboring states.

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South Dakota · 2026
State Taxable Income
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Annual Amount After Income Tax
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Monthly Allocation After Income Tax
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Weekly Allocation After Income Tax
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The annual amount is gross income minus entered pre-tax deductions and modeled federal and state income tax. Monthly and weekly amounts divide it by 12 and 52. These allocations exclude Social Security and Medicare (FICA), local taxes, other payroll taxes, and unmodeled paycheck deductions. They do not estimate paycheck take-home or actual withholding.

Effective State Income Tax Rate vs Neighboring States

About South Dakota state taxes (Tax year 2026)

South Dakota has no state income tax on individuals or corporations. The state is constitutionally prohibited from levying an income tax. It relies on sales tax and other revenue sources.

Groceries are taxed at the full state rate. Prescription drugs are exempt.

South Dakota's lack of income tax makes it very tax-friendly, though its taxation of groceries at the full rate is a notable drawback for lower-income residents.

Filing in South Dakota: returns for tax year 2026 are administered by the South Dakota Department of Revenue and are generally filed in 2027 by the federal April deadline unless South Dakota declares a state-specific extension. Tax type on this return: None. Top marginal rate: 0%. State sales-tax rate: 4.2%. For the most current contact info, see the Federation of Tax Administrators directory.

South Dakota — Does South Dakota have a state income tax? No. South Dakota has no personal or corporate income tax and is constitutionally prohibited from enacting one.

South Dakota — What is the sales tax in South Dakota? South Dakota has a 4.2% state sales tax. With local taxes, the average combined rate is about 6.11%.

South Dakota — Does South Dakota tax groceries? Yes, South Dakota taxes groceries at the full state sales tax rate, making it one of the few states that fully taxes food purchases.

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Reviewed methodology

How this page is reviewed

High YMYL · Last verified 2026-11-06

See methodology, assumptions & sources
Risk tierHigh YMYL
AuthorCalculover Editorial Team Tax education
Editorial ownerCalculover Tax & Payroll Desk State-tax methodology owner
ReviewerCalculover Editorial Review Government-source and limitation review
Last reviewed2026-11-06
Last verified2026-11-06
Data effective date2026-01-01
JurisdictionSouth Dakota

Methodology

These pages estimate annual state income tax for the selected 2026 jurisdiction and filing status. The route's coverage panel identifies the supported income basis, deductions, credits and exclusions.

Assumptions

  • Enter the income basis and eligible pre-tax deductions requested by the calculator; gross wages, federal AGI and state AGI are not interchangeable.
  • Some methods require confirmed state facts or explicit projection assumptions. An unavailable component is not zero tax.

Limitations

  • The estimate excludes unmodeled income, adjustments, local taxes and special filing situations. Utah's indexed-credit assumptions remain provisional while final 2026 instructions are pending.
  • Annual liability differs from withholding and paycheck take-home. Confirm the current official forms and source versions for a complete return.

Sources

Professional guidance: This page is for state-tax education only and is not tax, legal, financial, or investment advice. State tax decisions and multi-state filing should be reviewed with a CPA or enrolled agent licensed in the relevant states.

South Dakota Income Tax FAQs

Does South Dakota have a state income tax?

South Dakota has no general state income tax on wages or salaries. Federal and payroll taxes, local taxes, and state taxes on other income or activities are separate.

Why does South Dakota have no income tax?

South Dakota relies on other revenue sources such as sales taxes, property taxes, and in some cases natural resource taxes to fund state government.

What taxes do South Dakota residents still pay?

South Dakota residents pay federal income tax, Social Security (6.2%), and Medicare (1.45%) taxes. Local property taxes and sales taxes also apply depending on jurisdiction.

Do I save money by living in South Dakota?

State income tax savings depend on your income level. High earners can save thousands annually by living in a no-income-tax state like South Dakota compared to high-tax states like California or New York.

How does South Dakota compare to other no-income-tax states?

These nine states have no general wage income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Other income, payroll, property, sales and local taxes are separate, so a zero wage-income tax estimate does not imply zero total tax.