South Dakota payroll taxes
Every tax withheld from a South Dakota paycheck or paid by the employer in 2026, with rates and wage limits.
Last verified November 2, 2026. Sources: patriotsoftware.com, taxfoundation.org, oregon.gov.
| Tax | Employee pays | Employer pays | Wage limit |
|---|---|---|---|
| Social Security | 6.2% | 6.2% | $184,500 |
| Medicare | 1.45%* | 1.45% | No limit |
| FUTA | — | 0.6% | $7,000 |
| South Dakota SUTA | — | 1.75% (new) | $15,000 |
| South Dakota income tax | None | — | — |
*Plus 0.9% Additional Medicare Tax withheld on wages over $200,000. FUTA rate shown is net of the state credit.
State unemployment insurance
South Dakota charges new employers 1.75% on the first $15,000 each employee earns in a year. After a few years, the rate is based on the employer's layoff history and ranges from 0.08% to 9.13%. New employer rate is 1.2% UI + 0.55% investment fee per Patriot (DOL lists 1.2% UI only). Wage base fixed by statute.
Investment fee and administrative fee are included in the rates (new employers pay 0.55% investment fee in year 1)
Register and file with the South Dakota unemployment tax agency.
Income tax withholding
South Dakota does not tax wages, so there is no state income tax withheld from paychecks.
Frequently asked questions
- What payroll taxes do employers pay in South Dakota?
- Social Security, Medicare, federal unemployment (FUTA) and South Dakota unemployment insurance (SUTA).
- What is the South Dakota SUTA wage base for 2026?
- $15,000 per employee.
- Does South Dakota require state income tax withholding?
- No. South Dakota has no tax on wages.