Finance · South Dakota · Tax year 2026
South Dakota Self-Employment Tax Calculator 2026
On $100,000 of 2026 self-employment profit, a single South Dakota sole proprietor with no other income owes about $22,365: $14,130 of self-employment tax, $8,235 of federal income tax, and no South Dakota income tax. That is 22.4% of profit, or $5,591 for each quarterly estimated payment.
Against its neighbors, the same $100,000 of profit costs $4,796 more in Minnesota and the same in Wyoming.
- State income tax
- None on wages or self-employment income
- South Dakota tax on $100,000
- $0
- National rank
- $0 — tied with 9 others for lowest
- Set aside on $100,000
- 22.4%
- LLC filing fee
- $150
- State sales tax
- 4.2% + local
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More options
Enter your net profit — revenue minus business expenses — to see how much to set aside and what to pay each quarter.
A 2026 planning estimate using the standard deduction, not a tax return: it ignores credits, itemized deductions, and AMT. All calculations happen in your browser. Nothing is stored.
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South Dakota self-employment tax at common profit levels
2026 estimates for a single filer with no other income, using the standard deduction and no retirement or health insurance deductions. South Dakota does not tax this income, so every dollar here is federal; the neighbor comparison below shows what the same profit would cost next door.
| Profit | SE tax | Federal income tax | Total | Set aside | Quarterly |
|---|---|---|---|---|---|
| $40,000 | $5,652 | $1,775 | $7,427 | 18.6% | $1,857 |
| $60,000 | $8,478 | $3,559 | $12,037 | 20.1% | $3,009 |
| $80,000 | $11,304 | $5,344 | $16,647 | 20.8% | $4,162 |
| $100,000 | $14,130 | $8,235 | $22,365 | 22.4% | $5,591 |
| $150,000 | $21,194 | $16,413 | $37,608 | 25.1% | $9,402 |
| $250,000 | $29,851 | $36,509 | $66,360 | 26.5% | $16,590 |
South Dakota vs its neighbors
The same $100,000 of 2026 profit for a single sole proprietor, run through each state's rules. Federal tax is the same everywhere, so the difference is state income tax. Against its neighbors, the same $100,000 of profit costs $4,796 more in Minnesota and the same in Wyoming.
| State | State income tax | Total tax | Set aside | vs South Dakota |
|---|---|---|---|---|
| South Dakota | $0 | $22,365 | 22.4% | — |
| Iowa | $2,296 | $24,660 | 24.7% | +$2,296 |
| Minnesota | $4,796 | $27,161 | 27.2% | +$4,796 |
| Montana | $3,890 | $26,254 | 26.3% | +$3,890 |
| Nebraska | $3,349 | $25,714 | 25.7% | +$3,349 |
| North Dakota | $232 | $22,596 | 22.6% | +$232 |
| Wyoming | $0 | $22,365 | 22.4% | Same |
How the gap changes with profit
Extra tax (+) or savings (−) for a single filer if the same business were based in each of its neighbors instead of South Dakota.
| Profit | Iowa | Minnesota | Montana | Nebraska | North Dakota | Wyoming |
|---|---|---|---|---|---|---|
| $40,000 | +$601 | +$1,170 | +$990 | +$812 | Same | Same |
| $60,000 | +$1,166 | +$2,268 | +$1,864 | +$1,658 | Same | Same |
| $80,000 | +$1,731 | +$3,532 | +$2,840 | +$2,503 | Same | Same |
| $100,000 | +$2,296 | +$4,796 | +$3,890 | +$3,349 | +$232 | Same |
| $150,000 | +$3,708 | +$8,110 | +$6,515 | +$5,463 | +$957 | Same |
| $250,000 | +$6,913 | +$15,966 | +$11,929 | +$9,823 | +$2,601 | Same |
Married filing jointly
| Profit | Iowa | Minnesota | Montana | Nebraska | North Dakota | Wyoming |
|---|---|---|---|---|---|---|
| $40,000 | +$71 | +$352 | +$234 | +$245 | Same | Same |
| $60,000 | +$636 | +$1,346 | +$1,107 | +$897 | Same | Same |
| $80,000 | +$1,201 | +$2,341 | +$1,981 | +$1,624 | Same | Same |
| $100,000 | +$1,766 | +$3,533 | +$2,855 | +$2,469 | Same | Same |
| $150,000 | +$3,179 | +$6,692 | +$5,154 | +$4,584 | +$58 | Same |
| $250,000 | +$6,092 | +$13,324 | +$10,568 | +$8,943 | +$1,552 | Same |
What's different about South Dakota for the self-employed
- South Dakota has no personal or corporate income tax.
- South Dakota sales tax applies to services as well as goods: any service is taxable unless specifically exempt (SDCL 10-45-4), so many self-employed service providers must collect sales tax.
- The 4.2% state rate is temporary: the 2023 reduction from 4.5% sunsets June 30, 2027, and the codified rate effective July 1, 2027 is 4.5%.
- From January 1, 2027, SDCL 59-11-25 lets an LLC file its annual report either in its anniversary month or on or before January 31 each year, chosen at formation or changed later with a change-of-filing-date form.
LLC fees and sales tax in South Dakota
- Forming an LLC: $150 state filing fee.
- Annual Report: $55, every year, due by the first day of your anniversary month.
- Sales tax: 4.2% statewide, plus local rates in many cities and counties. Use the Sales Tax Calculator to price a sale.
A single-member LLC is taxed exactly like a sole proprietorship unless it elects S or C corporation status, so the self-employment tax figures on this page apply either way.
South Dakota self-employment tax FAQs
How much should I set aside for taxes if I'm self-employed in South Dakota?
For a single filer with no other income, about 20.1% of profit at $60,000, 22.4% at $100,000, and 25.1% at $150,000 for 2026. That is 4.8 points less than in Minnesota, the costliest of its neighbors at 27.2%. Enter your own numbers in the calculator for a personal figure.
Does South Dakota tax self-employment income?
No. South Dakota has no personal or corporate income tax. Federal self-employment tax and federal income tax still apply.
How much does an LLC cost in South Dakota?
The state filing fee to form an LLC is $150. Annual Report: $55, every year, due by the first day of your anniversary month. A single-member LLC is still taxed like a sole proprietorship for federal purposes, so the self-employment tax figures above apply.
Sources and method
Computed with the Self-Employment Tax Calculator's 2026 engine and South Dakota's rules from the sources below. Planning estimates, not a return. Last checked 2026-10-08.