★ South Dakota2026 Compliance Year
South Dakota Payroll Compliance
Every rate, wage base, and threshold South Dakota employers need for 2026 — sourced from the Dept. of Labor and Regulation — including a genuinely simple state-level payroll picture built around a single recurring obligation.
Last reviewed: July 2026 · Sources: dlr.sd.gov
Min Wage
$11.85
CPI-indexed
Income Tax
None
no state income tax
Local Tax
None
no city/county tax
SUI Wage Base
$15,000
unchanged
SUI Rate Range
0%–9.45%
experience-rated
Minimum Wage & Hours
South Dakota’s minimum wage is $11.85/hour for 2026, indexed annually to CPI under a 2014 ballot measure. No South Dakota city or county sets its own minimum wage.
| Item | 2026 Value | Notes |
|---|---|---|
| Statewide minimum wage | $11.85/hr | Annual CPI adjustment each January 1, per a 2014 voter initiative |
| Overtime rule | 40 hrs/week | Federal FLSA; no separate state daily overtime rule |
| Local wage ordinances | None | No South Dakota city or county sets its own minimum wage |
2026 minimum wage — Plains states comparison
South Dakota leads both Dakotas
South Dakota's CPI-indexed rate now sits well above North Dakota's federal-floor default.
Minnesota
$11.41
South Dakota
$11.85
Montana
$10.85
North Dakota / Wyoming
$7.25
Bars scaled to South Dakota's $11.85. South Dakota is highlighted in deep blue as the subject state.
State Income Tax
South Dakota is one of nine states with no personal income tax, and it also has zero local income taxes anywhere — a genuinely simple withholding picture.
| Item | 2026 Value | Notes |
|---|---|---|
| State income tax | None | No wage withholding required or possible |
| Local income tax | None | No South Dakota city or county imposes one |
SUI wage base — the only state-level payroll obligation
South Dakota vs. its no-income-tax peers
Among states with no income tax at all, South Dakota's SUI wage base sits mid-range.
Washington (has PFML, not income tax)
$78,200
Wyoming
$33,800
South Dakota
$15,000
Tennessee
$7,000
Bars scaled to Washington's $78,200. South Dakota is highlighted in deep blue as the subject state.
Unemployment Insurance (SUI)
South Dakota’s SUI wage base held flat at $15,000 for 2026, with a rate range that can reach as low as 0% for the best-experienced employers.
| Item | 2026 Value | Notes |
|---|---|---|
| SUI taxable wage base | $15,000 | Unchanged from 2025 |
| Rate range | 0% – 9.45% | Best-experienced employers can reach a 0% rate |
| Administering agency | Dept. of Labor and Regulation | Quarterly filing, standard schedule |
2026 SUI rate range
Best employers pay nothing; worst pay 9.45%
A genuinely wide spread, with a real 0% floor available to top performers.
Maximum (worst experience)
9.45%
Minimum (best experience)
0%
Bars scaled to the 9.45% ceiling. On the $15,000 wage base, worst-case annual cost per employee reaches $1,417.50.
Official South Dakota .gov Resources
About this guide: Independent editorial analysis for payroll professionals from publicly available South Dakota state government publications. Rates change; verify at official .gov sources. This is not legal or tax advice. Last reviewed July 2026.