South Dakota pay stubs: no state income tax
South Dakota has no state income tax and no local wage taxes, so a paycheck mainly shows federal withholding. Here is what to expect on the stub.
Last reviewed
Rates on this page are for the 2026 tax year and are reviewed every January.
State income tax
South Dakota does not tax personal income, so there is no state income tax line on a South Dakota pay stub and no state withholding form for employees to fill out. The state relies on sales and other taxes instead. For employees, this makes net pay easier to predict: the same gross pay produces the same take-home anywhere in the state, as long as their federal W-4 and benefits are the same.
Other state payroll deductions
There is no state disability insurance or paid family leave payroll deduction in South Dakota. Reemployment assistance (unemployment insurance) is funded by employer contributions, not by withholding from employees. The only other lines you are likely to see are items the employee chose or that are required by a court, such as:
- Health, dental or vision insurance premiums
- Retirement plan contributions, pre-tax or Roth
- Child support or other wage garnishments
Local taxes
South Dakota cities and counties do not levy income taxes on wages, so nothing local is withheld.
Federal withholding still applies
With no state income tax, federal payroll taxes are almost everything on the stub:
- Federal income tax, calculated from the employee's Form W-4.
- Social Security at 6.2% of wages up to the annual Social Security wage base.
- Medicare at 1.45% of all wages, and an extra 0.9% on wages above $200,000 in a calendar year.
Creating a South Dakota pay stub with PayStubNest
Head to /app/new, enter hours and rate or a salary, and select South Dakota. The exact figures on each stub depend on the employee's pay, pay frequency, W-4 choices, deductions and year-to-date totals, and PayStubNest calculates all of it automatically: federal withholding, a state income tax line left at zero, and year-to-date totals carried across every pay period. You can check the preview for free and pay only when you want the download.
Record-keeping tip
A stub with only federal lines is simple, which makes it tempting to skip year-to-date tracking. Keep it anyway: accurate YTD totals are what you reconcile against Forms 941 and W-2 at year end. If an employee works some days in a neighboring state that does tax income, such as Minnesota or Iowa, note those days separately. For pay statement questions, contact the South Dakota Department of Labor and Regulation, or browse our FAQ.