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South Dakota: minimum wage, income tax and cost of living

South Dakota in numbers: the minimum wage, state income tax, sales tax and median rent, from official sources, and what they mean for a budget.

Updated: October 11, 2026

What it costs to live and work in South Dakota: the minimum wage, state income tax, sales tax and median rent, from official sources, and what they mean for your monthly budget.

South DakotaSource
Minimum wage$11.85 an hourUS Department of Labor, Wage and Hour Division: State Minimum Wage Laws
State income taxnoneTax Foundation: State Individual Income Tax Rates and Brackets, 2026
State sales tax4.2 %South Dakota Department of Revenue: Sales and Use Tax
Median gross rent$999 a month (2024)US Census Bureau, American Community Survey 2024 1-year estimates, table B25064 Median Gross Rent (Dollars), by state

South Dakota's minimum wage is $11.85 an hour in 2026 and is adjusted every year for inflation.

South Dakota has no personal income tax.

The state sales and use tax is 4.2 %; cities add their own rates (average local rate 1.91 %).

What income does rent in South Dakota take?

A common rule of thumb is to keep rent at or below 30 % of gross income. At the median rent of $999 a month, that means a household income of about $40,000 a year before tax.

Work out your take-home pay

Good to know

  • South Dakota's sales tax also covers many services (Tax Foundation).

Sources

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