South Dakota Bonus Tax Calculator 2026
South Dakota does not impose a state income tax, so a South Dakota bonus is reduced only by federal income tax, Social Security and Medicare.
Bonus check calculator
Federal lines only
The South Dakota Department of Revenue says it plainly: "South Dakota is one of seven states that does not impose a state income tax." A South Dakota employer withholds nothing for the state from a bonus. With 22% federal, 6.2% Social Security and 1.45% Medicare, $5,000 nets $3,517.50; under the aggregate method, $3,451.19.
Cross-border jobs in Sioux Falls and beyond
Several of South Dakota's neighbors tax wages and withhold from bonuses. Pay for work done in Minnesota is withheld at Minnesota's 6.25% supplemental rate ($312.50 on $5,000), Iowa withholds 3.8% when federal is flat-rated ($190.00) and North Dakota's Option 1 is 1.50% ($75.00). Because South Dakota has no income tax, there is no home-state credit to offset what those states collect.
Bigger bonuses and the wage base
A $25,000 South Dakota bonus nets $17,587.50 at the flat federal rate and $14,970.95 when aggregated with a $3,000 biweekly paycheck. Late in the year a high earner may have little Social Security left to pay: with $175,000 already earned, only the first $9,500 of that bonus is under the 2026 $184,500 wage base, and the check grows to $18,548.50.
| Rule | No state income tax withholding |
|---|---|
| Valid through | No end date (statute or constitution) |
| Documents | South Dakota Taxes for Individuals (Read 2026-10-05) |
| Agency | South Dakota Department of Revenue |
| Federal income tax | −$1,100.00 |
| Social Security | −$310.00 |
| Medicare | −$72.50 |
| South Dakota income tax | −$0.00 |
| Net | $3,517.50 |