Free South Dakota Tax Calculator

South Dakota has no state income tax — and it is structurally committed to staying that way. The state collects no tax on wages, retirement income, investment income, or anything else resembling income. There's also no state inheritance or estate tax.

In Sioux Falls, Rapid City, or anywhere in the state, your paycheck sees only federal withholding: 2026 progressive brackets (10% to 37%) after the $16,100 standard deduction (single), then 6.2% Social Security up to $184,500 and 1.45% Medicare. A $75,000 single earner banks about $61,592 — nothing goes to the state.

South Dakota funds itself through sales tax (6.44% combined average — moderate, with the state rate at 4.2%) and a uniquely large financial-services sector: the state is a national hub for bank and trust-company charters, and financial-industry franchise fees replace what an income tax would raise.

Property tax averages 1.32% — higher than the zero-tax average, a common trade-off. The state is a magnet for retirees with investment income (no state capital gains or dividend tax) and for trust structures. For pure income-tax purposes, South Dakota is among the cleanest stories in the country.

Filing in South Dakota: there is no state income tax return — no state filing, no withholding reconciliation, nothing due to Pierre in April. Your only interaction with state revenue is the sales tax you pay at checkout.