South Dakota rules
Why South Dakota paychecks are bigger
South Dakota is one of just nine states with no personal income tax. For a salaried worker, the only deductions on your stub are federal: income tax, Social Security and Medicare. There is no South Dakota line item at all.
The trade-off: sales and property tax
South Dakota funds services through a 4.2% state sales tax (with local add-ons pushing the combined rate higher) and property taxes. For renters and modest spenders, the no-income-tax structure is a clear win.
Comparing South Dakota to other states
Run the same salary through a high-tax state — try California or New York — or compare with fellow no-tax neighbors Wyoming and North Dakota.
South Dakota — the full tax picture
Beyond income tax: what South Dakota really costs
Your paycheck is only half the story. To judge whether South Dakota is genuinely tax-friendly, you have to look at the three taxes that hit working households the hardest — income, sales and property — together.
Sales tax
South Dakota's average combined sales tax is about 6.1% (a 4.2% state rate plus local).
Property tax
Effective property tax averages roughly 1.0%, the state's main revenue source alongside sales tax.
Cost of living in the biggest metro
Sioux Falls and Rapid City keep overall living costs near or below the national average, so a no-income-tax paycheck has real purchasing power.
How South Dakota fits the national picture
For a complete side-by-side of all nine no-income-tax states and how their sales and property taxes compare, see our guide to states with no income tax. To benchmark a specific salary across states, use the take-home pay by state calculator or compare a high-tax example like California.
Questions
South Dakota salary calculator FAQ
Does South Dakota have a state income tax?
No. South Dakota is one of nine U.S. states with no personal income tax. Your paycheck is reduced only by federal income tax, Social Security (6.2%) and Medicare (1.45%).
How much is taken out of a paycheck in South Dakota?
Only federal taxes apply: federal income tax based on your bracket, 6.2% Social Security and 1.45% Medicare. On a $70,000 single salary, total deductions are roughly 17% to 19%.
What is the take-home pay on $100,000 in South Dakota?
A single filer earning $100,000 in South Dakota takes home roughly $79,000 a year, since there is no state income tax — only federal tax and FICA are withheld.
How does South Dakota fund services without an income tax?
South Dakota relies on a 4.2% state sales tax (plus local add-ons) and property taxes rather than an income tax, so your paycheck is larger but everyday purchases carry sales tax.
- Sources: South Dakota Department of Revenue (no income tax; sales tax) · IRS Rev. Proc. 2025-32 · SSA 2026 wage base.
- 🔄 Last updated June 25, 2026 · Tax year 2026
← Back to the national salary calculator · Compare: North Dakota · Wyoming · Nebraska