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 Dakota | Source | |
|---|---|---|
| Minimum wage | $11.85 an hour | US Department of Labor, Wage and Hour Division: State Minimum Wage Laws |
| State income tax | none | Tax Foundation: State Individual Income Tax Rates and Brackets, 2026 |
| State sales tax | 4.2 % | 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.
Good to know
- South Dakota's sales tax also covers many services (Tax Foundation).
Sources
- US Department of Labor, Wage and Hour Division: State Minimum Wage Laws (2026-07-01)
- Tax Foundation: State Individual Income Tax Rates and Brackets, 2026 (2026-02-19)
- Tax Foundation: State and Local Sales Tax Rates, 2026 (rates as of January 1, 2026) (2026-07-06)
- US Census Bureau, American Community Survey 2024 1-year estimates, table B25064 Median Gross Rent (Dollars), by state (2024)
- South Dakota Department of Revenue: Sales and Use Tax (2026-10-11)