Data Source and Methodology
- South Dakota Department of Revenue — Individual Taxes, “South Dakota does not impose a state individual income tax.” (Accessed Sep 13, 2025). Direct link: https://dor.sd.gov/
- Federation of Tax Administrators (FTA), “States Without a Broad‑Based Individual Income Tax” (latest listing; accessed Sep 13, 2025). https://www.taxadmin.org/
Tutti i calcoli si basano rigorosamente sulle formule e sui dati forniti da questa fonte.
The Formula Explained
Since South Dakota’s state income tax rate τ is zero, the resulting annual and per‑period state income tax are always 0, regardless of income or deductions. We still compute TI for transparency.
Glossary of Variables
Symbol / Field | Meaning |
---|---|
GI (Annual gross income) | Total annual wages before taxes and deductions. |
D_pre (Pre‑tax deductions) | Annual pre‑tax amounts (e.g., traditional 401(k), HSA, Section 125). |
TI (State taxable income) | max(0, GI − D_pre). |
τ (State tax rate) | 0 for South Dakota. |
N (Pay periods per year) | 1, 12, 24, 26, or 52 depending on your selection. |
T_state (Annual state tax) | τ × TI (equals $0 in South Dakota). |
T_pp (Per‑period state tax) | T_state ÷ N (equals $0 per paycheck in South Dakota). |
e (Effective state tax rate) | T_state ÷ GI (0% when GI > 0). |
How It Works: A Step‑by‑Step Example
Scenario: Annual gross income GI = $65,000; pre‑tax deductions D_pre = $5,000; pay frequency N = 26 (biweekly).
- Compute state taxable income using TI = max(0, GI − D_pre) = max(0, 65,000 − 5,000) = 60,000.
- Apply South Dakota rate τ = 0: T_state = τ × TI = 0 × 60,000 = $0.
- Per‑period tax: T_pp = T_state ÷ N = $0 ÷ 26 = $0.
- Effective state rate: e = T_state ÷ GI = 0 ÷ 65,000 = 0%.
Result: No South Dakota state income tax is owed annually or per paycheck.
Frequently Asked Questions (FAQ)
Does South Dakota have a state income tax on wages?
No. South Dakota does not levy a broad‑based individual income tax, so the state income tax on wages is $0.
Will my employer withhold South Dakota state income tax?
No. Employers in South Dakota do not withhold state income tax. Your paycheck may still include federal withholding and FICA (Social Security and Medicare).
Are there local (city/county) income taxes in South Dakota?
No. South Dakota has no local wage income taxes.
Why ask for pre‑tax deductions if the tax is $0?
We include pre‑tax deductions to transparently show how taxable income would be derived. In South Dakota, the tax remains $0 regardless.
Does this calculator handle federal income taxes?
No—this tool isolates South Dakota state income tax only. For a full paycheck estimate including federal taxes, use a comprehensive paycheck calculator.
Is the result ever non‑zero?
No, not for state income tax in South Dakota. The formula T_state = τ × TI uses τ=0, so the output is always $0.
What about other state taxes (e.g., sales, property)?
Those are different tax types. This tool is specifically for state income tax on wages and therefore returns $0 in South Dakota.