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
New Mexico vs South Dakota Income Tax Comparison (2026)
On a $75,000 salary (single filer, 2026), you pay $2,359 less state income tax a year in South Dakota than in New Mexico, which is about $197 a month. At $150,000 the gap is $6,019 in favor of South Dakota.
New Mexico: up to 5.9%South Dakota: no state taxUpdated October 10, 2026
Compare New Mexico 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.
2New Mexico
21.0%
Overall effective tax rate
- Net
- Federal
- State
- FICA
- Federal income tax
- $7,670
- State income tax
- $2,359
- Payroll tax (FICA)
- $5,738
- Total tax
- $15,767
- Net income (annual)
- $59,233
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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
New Mexico
Monthly gross$6,250
Monthly tax$1,314
Monthly take-home$4,936
Estimates use 2026 federal and state rates, the standard deduction for your filing status and no local taxes. Rankings use state income tax only.
New Mexico vs South Dakota: how the two systems differ
| New Mexico | South Dakota | |
|---|---|---|
| Wage income tax | Progressive, 6 brackets | No tax on wages |
| Top rate | 5.9% | 0% |
| Lowest rate | 1.5% | 0% |
| Deductions and credits (single) | $16,100 standard deduction | 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 | NM state tax | SD state tax | Difference | NM take-home | SD take-home |
|---|---|---|---|---|---|
| $30,000 | $351 | $0 | $351 less in South Dakota | $25,934 | $26,285 |
| $40,000 | $753 | $0 | $753 less in South Dakota | $33,567 | $34,320 |
| $50,000 | $1,184 | $0 | $1,184 less in South Dakota | $41,171 | $42,355 |
| $60,000 | $1,654 | $0 | $1,654 less in South Dakota | $48,736 | $50,390 |
| $75,000 | $2,359 | $0 | $2,359 less in South Dakota | $59,233 | $61,593 |
| $100,000 | $3,569 | $0 | $3,569 less in South Dakota | $75,611 | $79,180 |
| $150,000 | $6,019 | $0 | $6,019 less in South Dakota | $107,772 | $113,791 |
| $250,000 | $11,158 | $0 | $11,158 less in South Dakota | $172,024 | $183,182 |
Single filer, 2026, federal standard deduction. Take-home is after federal, state and payroll tax. No local taxes.
Married filing jointly
| Income | NM state tax | SD state tax | Difference | NM take-home | SD take-home |
|---|---|---|---|---|---|
| $75,000 | $1,429 | $0 | $1,429 less in South Dakota | $63,193 | $64,623 |
| $100,000 | $2,576 | $0 | $2,576 less in South Dakota | $82,134 | $84,710 |
| $150,000 | $4,961 | $0 | $4,961 less in South Dakota | $118,224 | $123,185 |
| $250,000 | $9,861 | $0 | $9,861 less in South Dakota | $187,607 | $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?
For a single filer, New Mexico and South Dakota charge the same state income tax (nothing) up to roughly $17,500 of income. Above that, South Dakota is the lower-tax state.
Rates side by side
New Mexico (single filers)
| 1.5% | Up to $5,500 |
| 3.2% | $5,501 to $16,500 |
| 4.3% | $16,501 to $33,500 |
| 4.7% | $33,501 to $66,500 |
| 4.9% | $66,501 to $210,000 |
| 5.9% | Over $210,000 |
South Dakota (single filers)
South Dakota has no state personal income tax. State revenue comes mainly from sales tax.
Full details for each state: New Mexico income tax calculator and South Dakota income tax calculator. Federal rates are on the 2026 federal tax brackets page.
New Mexico vs South Dakota FAQ
Which has lower income tax, New Mexico or South Dakota?+
South Dakota is lower at $75,000: $0 of state income tax versus $2,359 in New Mexico. At $150,000 it is $6,019 in New Mexico and $0 in South Dakota. For a single filer, New Mexico and South Dakota charge the same state income tax (nothing) up to roughly $17,500 of income. Above that, South Dakota is the lower-tax state.
How much more do I keep on $100,000 in New Mexico versus South Dakota?+
A single filer keeping $75,611 a year in New Mexico would keep $79,180 in South Dakota after federal, state and payroll tax. The difference is $3,569 a year, or $297 a month.
How do the New Mexico and South Dakota income tax systems differ?+
New Mexico uses progressive rates up to 5.9%; South Dakota has no tax on wages. State deductions and exemptions also differ, which changes how much income is taxed.
Are local taxes included in this New Mexico 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 New Mexico 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.