South Dakota · tax year 2027 · projected
South Dakota state income tax 2027.
South Dakota taxes no wages, salaries or investment income in 2027. See what the same paycheck would owe in twelve other states and estimate the 4.2% state sales and use tax on what you buy.
Short answer: There is no South Dakota state income tax in 2027. The South Dakota Department of Revenue states that South Dakota is one of seven states that does not impose a state income tax, so no employer withholds state tax from a South Dakota paycheck and there is no state return. The state instead relies on a 4.2% state sales and use tax (the department says the two taxes have the same rates and similar laws), municipal sales taxes, property tax and excise taxes on motor fuel, alcohol and tobacco. On $75,000 of wages a single filer would owe a projected $3,386.00 of state income tax in New York and $3,567.71 in Illinois for 2027, against $0.00 here.
Your wages and purchases
Result
Press Calculate to see the comparison.
Why there is no South Dakota income tax in 2027
The Department of Revenue’s page for individuals says it in one sentence: South Dakota is one of seven states that does not impose a state income tax. Nothing read on November 11, 2026 announced a change for 2027. That means no state withholding on wages, no state tax on interest, dividends, capital gains or retirement income, and no state income tax return to file. Federal income tax and FICA still apply; our South Dakota paycheck calculator works those out.
What South Dakota taxes instead
The department’s sales and use tax page says the state sales and use tax rate is 4.2%, and that the two taxes have the same rates and similar laws: sales tax is collected by licensed sellers, while use tax is owed by the buyer on items bought from unlicensed vendors, which the individuals page says you must file and pay yourself through an online form. Municipalities add their own sales tax; the pages read give no municipal rate or cap, which is why the estimator asks you to type the rate from the department’s lookup. Marketplace providers have had to license and remit sales tax since March 1, 2019. The individuals page also lists property tax, a motor fuel excise tax on fuel used to propel a motor vehicle, and alcohol and cigarette or tobacco taxes, without stating rates.
Same paycheck, other states
Table values come from the projected 2027 calculator used on each state page, for a single filer with $75,000 of wages and no dependents. A state’s figure is the state income tax only, before local taxes, credits and federal tax.
| State | Projected 2027 tax on $75,000 (single) | Effective rate |
|---|---|---|
| South Dakota | $0.00 | 0% |
| Illinois | $3,567.71 | 4.76% |
| Virginia | $3,472.53 | 4.63% |
| New York | $3,386.00 | 4.51% |
| Georgia | $2,994.00 | 3.99% |
| Michigan | $2,936.75 | 3.92% |
| New Jersey | $2,596.00 | 3.46% |
| Colorado | $2,591.60 | 3.46% |
| Kentucky | $2,507.40 | 3.34% |
| North Carolina | $2,483.78 | 3.31% |
| Pennsylvania | $2,302.50 | 3.07% |
| Mississippi | $2,126.25 | 2.83% |
| Ohio | $1,619.00 | 2.16% |
Worked example
A single South Dakota resident earns $75,000 and spends $12,000 in the year on taxable goods in a city with a 2% municipal rate. State income tax: $0.00; the same wages would owe $3,386.00 in New York. Sales tax: 4.2% of $12,000 is $504.00 to the state and 2% is $240.00 to the city, $744.00 in all, which is still far below the New York income tax figure. The municipal 2% is an input, not a published cap.
Who this is for, and what it does not cover
It is for people checking whether South Dakota taxes their pay in 2027 and what the state collects instead. It does not cover property tax bills, the municipal rate for any particular city, use tax owed on online purchases from unlicensed sellers, excise tax amounts, the federal income tax, or local taxes in the comparison states. The comparison states use the same projected 2027 figures as their own pages.
Figures read from the sources below on November 11, 2026. Last updated November 11, 2026.
Sources
- South Dakota Department of Revenue: Individuals, Taxes ("one of seven states that does not impose a state income tax"; use tax; property, motor fuel, alcohol and tobacco taxes) (retrieved November 11, 2026)
- South Dakota Department of Revenue: Sales and use tax (4.2% state rate; marketplace providers since March 1, 2019) (retrieved November 11, 2026)
Common mix-ups
-
Often assumedSouth Dakota is about to add an income tax for 2027.
What the source saysThe Department of Revenue page read on November 11, 2026 says South Dakota is one of seven states that does not impose a state income tax, and nothing on it announces a 2027 change. [1]
-
Often assumedWith no income tax there is nothing to self-report to the state.
What the source saysThe department says individuals must file and pay use tax on items bought from unlicensed vendors, through its online form. [1]
-
Often assumedSales tax and use tax in South Dakota are charged at different rates.
What the source saysThe department says the two taxes have the same tax rates and have similar laws; the state rate is 4.2% for both. [2]
- South Dakota Department of Revenue: Individuals, Taxes
- South Dakota Department of Revenue: Sales and use tax
Checked against these sources on .
Frequently asked questions
Does South Dakota have a state income tax in 2027?
No. The Department of Revenue says South Dakota is one of seven states that does not impose a state income tax, and nothing read on November 11, 2026 changes that for 2027.
What is the South Dakota sales tax rate?
4.2% for the state sales and use tax, per the Department of Revenue, plus any municipal sales tax, which this page does not store.
Do I owe use tax in South Dakota?
The department says individuals must file and pay use tax on items bought from unlicensed vendors, and can self-report it through an online form.
Does South Dakota tax retirement income or capital gains?
There is no state income tax of any kind, so pensions, Social Security, interest, dividends and capital gains are not taxed by the state.
How much would the same pay owe in another state?
On $75,000 of wages for a single filer with no dependents the projected 2027 state income tax is $3,386.00 in New York and $3,567.71 in Illinois, against $0.00 in South Dakota.
Which other states have no income tax?
The department counts seven; our states with no income tax page lists them, and Washington, Alaska and Florida have their own 2027 pages here.
Is federal tax still withheld from a South Dakota paycheck?
Yes. Federal income tax, Social Security and Medicare apply as everywhere; only the state layer is zero.
Is this an estimate of my final tax?
The state income tax is $0 under the law in force on November 11, 2026. The sales tax figure is 4.2% of what you type plus the municipal rate you enter, and the comparison figures are projections from the other states’ pages.
Not tax advice
This page is general information, not tax, legal or financial advice. The $0 state income tax reflects the law in force on November 11, 2026; sales tax is estimated from the 4.2% state rate and the municipal rate you type; comparison figures are projections from the other states’ pages. Confirm anything that matters with the Department of Revenue or a tax professional before you act. Everything runs in your browser; nothing you enter is sent anywhere.