South Dakota Income Tax Calculator
Understanding South Dakota Taxes (2024)
Calculating your taxes in South Dakota is simplified since the state has no income tax. This calculator helps you estimate your take-home pay by considering federal taxes and FICA contributions.
South Dakota Income Tax Structure
South Dakota has no state income tax. This means residents keep more of their earnings and only pay federal income taxes and FICA taxes (Social Security and Medicare).
Tax Advantages of Living in South Dakota
South Dakota is one of only seven states with no state income tax. This creates a significant tax advantage for residents, particularly those with high incomes who would pay substantial state income taxes in other states.
For retirees, South Dakota doesn't tax Social Security benefits, pension income, or other retirement income, making it a tax-friendly state for retirement.
Federal Income Tax
Federal income tax is based on federal tax brackets, your filing status, deductions, and W-4 allowances. Pre-tax deductions like 401(k) or HSA contributions reduce your federal taxable income.
FICA Taxes
FICA taxes fund Social Security and Medicare.
- Social Security: 6.2% on income up to $168,600 for 2024.
- Medicare: 1.45% on all income, with an additional 0.9% on income above certain thresholds.
Other South Dakota Taxes
- Sales Tax: South Dakota has a 4.5% state sales tax. Municipalities can add up to an additional 2%, bringing the maximum combined sales tax rate to 6.5%.
- Property Tax: South Dakota has relatively moderate property taxes with an average effective property tax rate of approximately 1.28% of a property's assessed value.
- No Inheritance or Estate Tax: South Dakota does not impose inheritance or estate taxes, making it attractive for estate planning purposes.
Disclaimer: This information is for general guidance for the 2024 tax year and is not tax advice. Consult a tax professional for personalized advice.