$40,000 After Taxes in South Dakota (2026)

A single filer paid $40,000 in South Dakota has $23,900 of federal taxable income after the $16,100 standard deduction. The top slice of that income falls in the 12% federal bracket, which starts at $12,400 of taxable income, and federal income tax comes to $2,620, or 6.55% of the salary.

Payroll tax is federal and the same in South Dakota as everywhere else: on $40,000 of wages it is $3,060, made up of $2,480 of Social Security at 6.2% of every dollar and $580 of Medicare at 1.45%.

South Dakota levies no individual income tax, so nothing is withheld for the state and the $40,000 salary loses only federal income tax and payroll tax. South Dakota levies no individual income tax. The Department of Revenue states that South Dakota is one of seven states that does not impose a state income tax. There is no local individual income or earnings tax in South Dakota.

Altogether $5,680 of a $40,000 South Dakota salary goes to tax, an effective total rate of 14.20%, which leaves $34,320 a year: $2,860 a month, $1,320 every two weeks, $660 a week, or $17 an hour over 2,080 hours.

At $40,000, South Dakota ranks 1st, tied with 9 others, of 51 jurisdictions for take-home pay, highest first. That is the most any state leaves at this salary, $1,052 a year more than the median state. The lowest take-home at $40,000 is $31,886, in Oregon, $2,434 less than in South Dakota.

Across the state line the same $40,000 leaves a single filer: North Dakota the same $34,320; Minnesota $32,999, $1,321 less; Iowa $33,452, $868 less; Nebraska $33,380, $940 less; Wyoming the same $34,320; Montana $33,197, $1,123 less.

These South Dakota figures treat the whole $40,000 as wages, take the standard deduction, claim no dependents and include no federal credits. A pre-tax 401(k) contribution or health premium would lower taxable income and raise take-home; a second income or itemized deductions would change it again.