South Dakota payroll tax rates
Unemployment tax, income tax withholding, minimum wage and paid leave in South Dakota, each with its effective date and the agency page it comes from.
Unemployment insurance
Checked on October 5, 2026.
Income tax withholding
| Item | Value | Effective | Source |
|---|---|---|---|
| Agency | None | South Dakota Department of Revenue, Individual Taxes (opens in a new tab) | |
| Withholding rates | No income tax | South Dakota Department of Revenue, Individual Taxes (opens in a new tab) | |
| Supplemental wages | None | South Dakota Department of Revenue, Individual Taxes (opens in a new tab) | |
| Reciprocity | None | South Dakota Department of Revenue, Individual Taxes (opens in a new tab) | |
| Employee's withholding form | None | South Dakota Department of Revenue, Individual Taxes (opens in a new tab) | |
| Local income taxes | Not confirmed |
Checked on October 5, 2026. Not confirmed: no official source settled the figure on the check date, so none is shown.
Minimum wage
| Item | Value | Effective | Source |
|---|---|---|---|
| Minimum wage | $11.85 | South Dakota DLR, Minimum Wage (opens in a new tab) | |
| Tipped employees, cash wage | $5.93 | South Dakota DLR, Minimum Wage (opens in a new tab) | |
| Rises with inflation | Yes | SDCL 60-11-3.2, Annual minimum wage adjustment (opens in a new tab) | |
| Local rates | Not confirmed |
Checked on October 5, 2026. Not confirmed: no official source settled the figure on the check date, so none is shown.
Paid family and medical leave
| Item | Value | Effective | Source |
|---|---|---|---|
| State program | None | South Dakota DLR, South Dakota Labor and Employment Laws: What You Need to Know (REV 01/2026, PDF) (opens in a new tab) |
Checked on October 5, 2026.
Workers' compensation
| Item | Value | Effective | Source |
|---|---|---|---|
| Required | From the first employee | South Dakota DLR, Workers' Compensation Coverage (opens in a new tab) | |
| State fund | None; private insurers | South Dakota DLR, Workers' Compensation Coverage (opens in a new tab) |
Checked on October 5, 2026.
What a paycheck costs the employer in South Dakota
Employer taxes and contributions on one employee's pay in South Dakota, per check and for the year, at the rates a new employer pays. State rates are the ones on this page; federal rates are the ones on the federal payroll tax rates page.
- Employer taxes and contributions per check
- $230.77
- First check of the year
- Cost per check
- $2,538.46
- Pay included, first check
- Cost per year
- $64,894.50
- Pay included
Later checks cost less once pay passes a wage base: the year's last check costs $2,484.23, pay included.
| Item | Rate | First check | Per year | Source |
|---|---|---|---|---|
| Social Security, employer share | 6.2% on the first $184,500 | $143.08 | $3,720.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| Medicare, employer share | 1.45% of all pay | $33.46 | $870.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| Federal unemployment (FUTA) | 0.6% on the first $7,000After the full 5.4% credit. Employers in a credit reduction state pay more. | $13.85None after check 4 | $42.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| South Dakota unemployment | 1.75% on the first $15,0001.75% in year 1 (1.20% RA tax plus 0.55% investment fee); 1.55% in years 2 and 3 with a positive account balance. Construction: 6.55% in year 1, 3.55% in years 2 and 3. | $40.38None after check 7 | $262.50 | South Dakota DLR, Reemployment Assistance Employer FAQ ('What is my tax rate?', New Employer Tax Rates) (opens in a new tab) |
| Employer taxes and contributions | $230.77 | $4,894.50 | ||
| Pay | $2,307.69 | $60,000.00 | ||
| Pay plus employer costs | $2,538.46 | $64,894.50 |
Checked on October 5, 2026. Shows one employee's pay for a full calendar year, every check at the rates in force on October 13, 2026, with all pay subject to these taxes, the new employer rates and the full employer shares the law sets. An employer may choose to pay an employee's share too. Benefits and other costs are not included.
Common questions
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Rates in other states
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
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- North Dakota
- Ohio
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- Pennsylvania
- Rhode Island
- South Carolina
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Sources
The agency page or document behind each figure, as checked.
- South Dakota DLR, Reemployment Assistance Tax, Employer Registration (opens in a new tab)
- South Dakota DLR, Reemployment Assistance Employer FAQ ('What is the Reemployment Assistance taxable wage base?') (opens in a new tab)
- SDCL 61-1-46, Wages defined--Maximum annual wages subject to coverage (opens in a new tab)
- SDCL 61-5-36, Deduction of contributions from wages prohibited (opens in a new tab)
- US DOL, FUTA Credit Reductions (opens in a new tab)
- South Dakota Department of Revenue, Individual Taxes (opens in a new tab)
- South Dakota DLR, Minimum Wage (opens in a new tab)
- SDCL 60-11-3.2, Annual minimum wage adjustment (opens in a new tab)
- South Dakota DLR, South Dakota Labor and Employment Laws: What You Need to Know (REV 01/2026, PDF) (opens in a new tab)
- South Dakota DLR, Workers' Compensation Coverage (opens in a new tab)
- IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab)
General information, not legal or tax advice. Rules change; confirm current requirements with the relevant agency or your advisor. You remain responsible for your employment taxes.