1South Dakota
Lowest17.9%
Overall effective tax rate
- Net
- Federal
- State
- FICA
- Federal income tax
- $7,670
- State income tax
- $0
- Payroll tax (FICA)
- $5,738
- Total tax
- $13,408
- Net income (annual)
- $61,593
Tax year 2026 · state vs state
Indiana vs South Dakota Income Tax Comparison (2026)
On a $75,000 salary (single filer, 2026), you pay $2,183 less state income tax a year in South Dakota than in Indiana, which is about $182 a month. At $150,000 the gap is $4,396 in favor of South Dakota.
Indiana: 2.95% flatSouth Dakota: no state taxUpdated October 10, 2026
Compare Indiana and South Dakota for your income
Estimate for education only, not tax advice. 2026 federal and state rules, standard deductions, no local taxes. How we calculate.
State comparison
Comparing 2 states, sorted by lowest overall tax rate.
2Indiana
20.8%
Overall effective tax rate
- Net
- Federal
- State
- FICA
- Federal income tax
- $7,670
- State income tax
- $2,183
- Payroll tax (FICA)
- $5,738
- Total tax
- $15,591
- Net income (annual)
- $59,410
Advanced analysis (optional)
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💰 Monthly breakdown
Your take-home pay, spread across the year
South Dakota
Monthly gross$6,250
Monthly tax$1,117
Monthly take-home$5,133
Indiana
Monthly gross$6,250
Monthly tax$1,299
Monthly take-home$4,951
Estimates use 2026 federal and state rates, the standard deduction for your filing status and no local taxes. Rankings use state income tax only.
Indiana vs South Dakota: how the two systems differ
| Indiana | South Dakota | |
|---|---|---|
| Wage income tax | Flat 2.95% | No tax on wages |
| Top rate | 2.95% | 0% |
| Lowest rate | 2.95% | 0% |
| Deductions and credits (single) | $1,000 personal exemption | Not applicable |
State income tax and take-home pay at every salary
The same salary can leave you with different take-home pay depending on the state. This table applies each state’s 2026 rules to a single filer with no pre-tax contributions.
| Income | IN state tax | SD state tax | Difference | IN take-home | SD take-home |
|---|---|---|---|---|---|
| $30,000 | $856 | $0 | $856 less in South Dakota | $25,430 | $26,285 |
| $40,000 | $1,151 | $0 | $1,151 less in South Dakota | $33,170 | $34,320 |
| $50,000 | $1,446 | $0 | $1,446 less in South Dakota | $40,910 | $42,355 |
| $60,000 | $1,741 | $0 | $1,741 less in South Dakota | $48,650 | $50,390 |
| $75,000 | $2,183 | $0 | $2,183 less in South Dakota | $59,410 | $61,593 |
| $100,000 | $2,921 | $0 | $2,921 less in South Dakota | $76,260 | $79,180 |
| $150,000 | $4,396 | $0 | $4,396 less in South Dakota | $109,396 | $113,791 |
| $250,000 | $7,346 | $0 | $7,346 less in South Dakota | $175,837 | $183,182 |
Single filer, 2026, federal standard deduction. Take-home is after federal, state and payroll tax. No local taxes.
Married filing jointly
| Income | IN state tax | SD state tax | Difference | IN take-home | SD take-home |
|---|---|---|---|---|---|
| $75,000 | $2,154 | $0 | $2,154 less in South Dakota | $62,469 | $64,623 |
| $100,000 | $2,891 | $0 | $2,891 less in South Dakota | $81,819 | $84,710 |
| $150,000 | $4,366 | $0 | $4,366 less in South Dakota | $118,819 | $123,185 |
| $250,000 | $7,316 | $0 | $7,316 less in South Dakota | $190,152 | $197,468 |
Married filing jointly, 2026, federal standard deduction. Uses each state's joint brackets where they differ.
Does the lower-tax state change as income rises?
Across every income from $10,000 to $1,000,000 that we tested, South Dakota charges the same or less state income tax than Indiana for a single filer, so there is no income level where the ranking flips.
Rates side by side
Indiana (single filers)
| 2.95% | Over $0 |
South Dakota (single filers)
South Dakota has no state personal income tax. State revenue comes mainly from sales tax.
- Indiana: Indiana counties also levy a local income tax, typically between 0.5% and 3%, which is not included here.
Full details for each state: Indiana income tax calculator and South Dakota income tax calculator. Federal rates are on the 2026 federal tax brackets page.
Indiana vs South Dakota FAQ
Which has lower income tax, Indiana or South Dakota?+
South Dakota is lower at $75,000: $0 of state income tax versus $2,183 in Indiana. At $150,000 it is $4,396 in Indiana and $0 in South Dakota. Across every income from $10,000 to $1,000,000 that we tested, South Dakota charges the same or less state income tax than Indiana for a single filer, so there is no income level where the ranking flips.
How much more do I keep on $100,000 in Indiana versus South Dakota?+
A single filer keeping $76,260 a year in Indiana would keep $79,180 in South Dakota after federal, state and payroll tax. The difference is $2,921 a year, or $243 a month.
How do the Indiana and South Dakota income tax systems differ?+
Indiana uses a flat 2.95% rate; South Dakota has no tax on wages.
Are local taxes included in this Indiana vs South Dakota comparison?+
No. It covers federal income tax, Social Security, Medicare and state income tax only. City, county, sales and property taxes are not included, and they can change the real cost of living in each state.
Should I move from Indiana to South Dakota to save on taxes?+
State income tax is one cost among many. Property and sales taxes, housing, insurance and wages also differ, and you may owe tax to both states in the year you move. Use this comparison as one input and confirm details with a tax professional.
Sources
- Tax Foundation: 2026 state individual income tax rates and brackets
- IRS: Tax inflation adjustments for tax year 2026
Last checked October 10, 2026. Confirm with your state tax agency before filing.
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Estimates for education only, not tax, legal or financial advice. Not a substitute for a tax professional or your state revenue department.