Use our South Dakota Paycheck Calculator to quickly figure out how much you’ll take home after taxes. Just enter your salary, pay frequency, and deductions to get a detailed breakdown of your gross pay, taxes, and net pay in seconds.
How Your South Dakota Paycheck is Calculated
Your paycheck reflects what remains after taxes and withholdings are subtracted from your gross pay. The general formula is:
Gross Pay – (Federal Taxes + State Taxes + Local Taxes + FICA) = Net Pay
Here’s how each part works:
- Gross Pay: The total amount you earn before any taxes or deductions.
- Federal Income Tax: Based on IRS tax brackets, your filing status, and claimed allowances.
- FICA Taxes: Federal contributions for Social Security and Medicare.
- State Income Tax: South Dakota does not have a state income tax.
- Local Taxes: Most South Dakota cities and counties do not levy local income taxes.
A Guide to South Dakota State Payroll Taxes
South Dakota State Income Tax
South Dakota is one of the few states with no state income tax. That means your paycheck will not have any state tax withholding, regardless of how much you earn or where you live in the state. This makes take-home pay in South Dakota higher compared to many other states.
| Tax Type | Rate |
|---|---|
| State Income Tax | None |
Since there is no income tax, there are also no state tax brackets, deductions, or personal exemptions to consider.
State-Specific Programs and Withholdings
South Dakota does not require employees to contribute to state disability insurance (SDI) or paid family leave programs. However, employers are responsible for paying state unemployment insurance (SUI) taxes, which do not come out of employee paychecks. As an employee, your paycheck deductions are generally limited to federal taxes and FICA.
Understanding Federal and FICA Taxes
While South Dakota does not tax income, federal and FICA taxes still apply to all workers. These are standard across the United States.
For 2025, the FICA tax rates are:
- Social Security tax: 6.2% of wages up to $168,600
- Medicare tax: 1.45% of all wages, plus an additional 0.9% on income over $200,000 for single filers
Your federal income tax withholding depends on your income, filing status, and any adjustments you make on your W-4 form.
Local Taxes in South Dakota
Most cities and counties in South Dakota, including Sioux Falls, Rapid City, and Aberdeen, do not charge local income taxes. However, residents may pay local property taxes and sales taxes, depending on where they live. For paycheck purposes, you won’t see additional local income tax withholdings in South Dakota.
Frequently Asked Questions (FAQs) About South Dakota Paychecks
What is the minimum wage in South Dakota?
As of 2025, the minimum wage in South Dakota is $11.20 per hour. The state adjusts its minimum wage annually based on inflation.
How often are paydays in South Dakota?
Employers in South Dakota can choose to pay employees weekly, bi-weekly, or semi-monthly, but they must maintain a consistent schedule once established.
What is the South Dakota state tax rate for 2025?
There is no state income tax in South Dakota for 2025.
Are 1099 contractors subject to South Dakota taxes?
Independent contractors in South Dakota do not pay state income tax but are still required to pay federal income and self-employment taxes. Contractors should make quarterly estimated tax payments to the IRS.
What are the overtime laws in South Dakota?
South Dakota follows federal overtime regulations under the Fair Labor Standards Act (FLSA). Nonexempt employees must receive 1.5 times their regular pay rate for any hours worked over 40 in a workweek.
Disclaimer
The South Dakota Paycheck Calculator provides an estimate based on 2025 tax data and general assumptions. Actual results may vary depending on your income, deductions, benefits, and personal tax situation. For specific tax or payroll advice, consult a certified tax professional or financial advisor.