State Tax · SD · 2025
South Dakota Income Tax Calculator
South Dakota levies no state individual income tax.
South Dakota levies no state individual income tax.
Methodology
South Dakota does not impose a state individual income tax. Residents pay no state income tax on wages, salary, interest, dividends, or capital gains (with the exception noted above, if any). Federal income tax obligations still apply.
Last reviewed: January 2025. Verified against South Dakota Department of Revenue.
Frequently asked questions
Does South Dakota have a state income tax?
South Dakota levies no state individual income tax.
Do I need to file a South Dakota state income tax return?
Because South Dakota has no state income tax, residents are generally not required to file a state income tax return. However, you may still owe federal income tax and must file a federal return if required by IRS rules.
Does living in South Dakota mean I pay no income tax at all?
No — you still owe federal income tax to the IRS on your income. South Dakota simply does not impose an additional state-level income tax. If you earn income in another state, that state may require you to file a nonresident return.
Can I save on taxes by moving to South Dakota?
Residents of South Dakota avoid state income tax, which can be meaningful for high earners. However, a full tax comparison should include all state and local taxes (property, sales, excise), not just income tax. Consult a tax professional before relocating for tax reasons.
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