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%
Brackets
None
Calculate your full tax picture
South Dakota is only part of the equation — federal taxes apply too.
State Tax Ranking
At $75,000 income (single filer), South Dakota ranks #5 out of 51 states — where #1 is the lowest tax burden.
Best states to move to from South Dakota →Tax at Different Income Levels
| Income | State Tax | Effective Rate | Take-Home |
|---|---|---|---|
| $50,000 | $0 | 0.00% | $46,129 |
| $75,000 | $0 | 0.00% | $67,051 |
| $100,000 | $0 | 0.00% | $86,551 |
| $150,000 | $0 | 0.00% | $124,933 |
| $200,000 | $0 | 0.00% | $162,933 |
Single filer, standard deduction, 2025 tax year. Take-home is after federal + state income tax (excludes FICA).
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.
Tax Planning Tip
South Dakota's zero income tax and low overall tax burden make it one of the most tax-friendly states for high earners. The low cost of living outside of major cities amplifies this advantage.
Property Tax & Cost of Living
Property tax rate is the state average effective rate. Actual rates vary by county. COL index from BEA Regional Price Parities.
Explore South Dakota taxes
Compare South Dakota with another state
Side-by-side tax burden comparison.
Moving to/from South Dakota
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See where South Dakota ranks
Compare all 50 states by tax rate.
Best states to move to from South Dakota
See which states can lower your total tax burden from here.
Frequently asked questions
What is South Dakota's income tax rate in 2025?
South Dakota has no state income tax. Residents pay only federal income tax on their earnings.
Does South Dakota tax Social Security benefits?
South Dakota does not tax Social Security benefits. Since there is no state income tax, no income of any kind is taxed at the state level.
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