Employer payroll taxes in South Dakota for 2026
On top of each paycheck, a South Dakota employer pays these taxes. None of them come out of the employee's pay. On a $60,000 salary they add $4,894.50 a year, so the employee costs $64,894.50.
| Employer tax | Rate | Wages taxed |
|---|---|---|
| Social Security | 6.2% | First $184,500 |
| Medicare | 1.45% | No limit |
| Federal unemployment (FUTA) | 0.6% | First $7,000 |
| South Dakota unemployment (SUTA) | 1.75% for new employers | First $15,000 |
South Dakota unemployment tax (SUTA)
South Dakota employers pay state unemployment tax on the first $15,000 of each employee's wages in 2026. A new employer starts at 1.75%.
New employers pay 1.75% the first year, including the 0.55% investment fee. New construction employers pay 6.55%.
What an employee costs in South Dakota
Yearly employer taxes and total cost for a single filer paid every two weeks, at the new-employer unemployment rate, for an employer with 10 employees. Benefits and workers' compensation insurance are extra.
| Salary | Employer taxes | Total cost | Added to pay | Employee take-home |
|---|---|---|---|---|
| $30,000 | $2,599.50 | $32,600 | 8.7% | $26,285 |
| $40,000 | $3,364.50 | $43,365 | 8.4% | $34,320 |
| $50,000 | $4,129.50 | $54,130 | 8.3% | $42,355 |
| $60,000 | $4,894.50 | $64,895 | 8.2% | $50,390 |
| $75,000 | $6,042.00 | $81,042 | 8.1% | $61,593 |
| $100,000 | $7,954.50 | $107,955 | 8% | $79,180 |
| $125,000 | $9,867.00 | $134,867 | 7.9% | $96,704 |
| $150,000 | $11,779.50 | $161,780 | 7.9% | $113,791 |
Withholding from South Dakota paychecks
From the employee's pay you withhold federal income tax under the W-4, 6.2% Social Security, 1.45% Medicare . South Dakota has no state income tax on wages, so there is nothing to withhold for it. Employees checking their own pay can use the South Dakota paycheck calculator. Running a bonus? Use the bonus payroll calculator.
South Dakota employer taxes compared with nearby states
The same $60,000 employee, at each state's new-employer unemployment rate. Of the states that border South Dakota, Wyoming has the lowest employer taxes.
| State | State unemployment | All employer taxes | Total cost |
|---|---|---|---|
| South Dakota | $262.50 | $4,894.50 | $64,895 |
| Iowa payroll calculator | $204.00 | $4,836.00 | $64,836 |
| Minnesota payroll calculator | $1,010.24 | $5,642.24 | $65,642 |
| Montana payroll calculator | $558.14 | $5,190.14 | $65,190 |
| Nebraska payroll calculator | $112.50 | $4,744.50 | $64,745 |
| North Dakota payroll calculator | $466.00 | $5,098.00 | $65,098 |
| Wyoming payroll calculator | $0.00 | $4,632.00 | $64,632 |
Sources
South Dakota unemployment and program rates come from the state's own 2026 figures: dlr.sd.gov, dlr.sd.gov, dlr.sd.gov. Federal figures follow IRS Publication 15 and Publication 15-T. See how we calculate for the withholding method.