South Dakota Income Tax
South Dakota is one of nine US states with no state income tax. The state constitution prohibits a personal income tax, making it an attractive destination for individuals and businesses seeking a lower tax burden.
Tax Type
No Income Tax
Income Tax Rate
0%
Tax Brackets
None
What You Should Know
While South Dakota has no state income tax, it funds state services through sales tax (4.5% state rate, up to 6.5% with local taxes) and other revenue sources. South Dakota also has no state inheritance tax or estate tax. Residents still owe federal income tax and FICA taxes on their earnings.