South Dakota Income Tax Guide 2025
Great news! South Dakota has no state income tax.
This means you only pay federal taxes, Social Security, and Medicare. Your take-home pay in South Dakota will be higher than in most other states!
Sample Take-Home Pay Calculations for South Dakota
Here's what different salary levels look like after taxes in South Dakota(assuming single filing status and standard deductions):
| Gross Salary | Net Take-Home | Effective Tax Rate | Monthly Net |
|---|---|---|---|
| $40,000 | $34,124 | 14.69% | $2,844 |
| $50,000 | $42,159 | 15.68% | $3,513 |
| $60,000 | $50,194 | 16.34% | $4,183 |
| $75,000 | $60,922 | 18.77% | $5,077 |
| $100,000 | $78,509 | 21.49% | $6,542 |
| $125,000 | $95,899 | 23.28% | $7,992 |
| $150,000 | $112,987 | 24.68% | $9,416 |
| $200,000 | $149,108 | 25.45% | $12,426 |
Living in South Dakota: Tax Considerations
Living in South Dakota offers significant tax advantages since there's no state income tax. This can result in thousands of dollars in annual savings compared to high-tax states.
However, keep in mind that states without income tax often have:
- Higher sales taxes
- Higher property taxes
- Other fees and taxes to generate revenue
Maximizing Your Take-Home Pay in South Dakota
- Contribute to tax-deferred retirement accounts (401k, IRA)
- Utilize Health Savings Accounts (HSA) if eligible
- Take advantage of Flexible Spending Accounts (FSA)
- Understand available state tax deductions and credits
- Consider the timing of income and deductions
South Dakota vs Other States
Compare your take-home pay in South Dakota with other states: