South Dakota paycheck calculator

South Dakota is one of the handful of states with no personal income tax, and its Department of Revenue says so plainly. Nothing is withheld for the state, there is no state withholding certificate to fill in at a new job, and no South Dakota city or county taxes wages either. A paycheck earned here carries federal income tax, Social Security and Medicare, and then whatever you choose to deduct yourself.

There is no state payroll levy for disability insurance, paid family leave or long-term care, so the deductions that show up on stubs in states such as New York, Oregon or Washington do not appear here. The difference between gross and net pay in South Dakota is almost entirely federal, which makes the federal W-4 the one form that really shapes your take-home pay. Extra withholding, dependents and a second job all work through the federal form alone.

That simplicity changes when the job is across a state line. A South Dakota resident who works in Minnesota, Iowa or Nebraska has that state’s income tax withheld, and with no South Dakota tax to credit it against, the state cannot offer anything back. Sioux Falls sits close to both the Iowa and Minnesota borders, so this comes up more often than the state’s size would suggest. The reverse case is easy: someone who lives in one of those states and works in South Dakota has nothing withheld for South Dakota, although the home state still taxes those wages on its own return and may ask the employer to withhold.

Because the federal line is the main variable, pre-tax savings have a cleaner effect here than in most places. A traditional 401(k) contribution lowers federal withholding and nothing else, and the 401(k) paycheck impact calculator shows how much of each contribution comes back as a smaller tax line. Hourly workers can use the hourly paycheck calculator, and the calculator below handles salaried pay at any frequency.