TaxWrenTaxes for South Dakota freelancers in 2026
For a single freelancer with $85,000 of 1099 profit, that means the whole tax bill is federal: $12,010 of self-employment tax and $5,790 of income tax, or 20.9% of profit.
No neighboring state taxes this income less. North Dakota, Iowa, Nebraska, Montana and Minnesota would charge up to $3,848 more.
South Dakota vs. neighboring states
Tax on $85,000 of 1099 profit for a single filer in 2026. The median across all 50 states and DC is $2,729 of state income tax.
| State | State tax | Total tax | Take-home |
|---|---|---|---|
| South Dakota | $0 | $17,800 | $67,200 |
| Iowa | $2,350 | $20,150 | $64,850 |
| Minnesota | $3,848 | $21,648 | $63,352 |
| Montana | $3,102 | $20,902 | $64,098 |
| North Dakota | $281 | $18,081 | $66,919 |
| Nebraska | $2,715 | $20,515 | $64,485 |
| Wyoming | $0 | $17,800 | $67,200 |
How South Dakota taxes changed
South Dakota had no wage income tax in 2025 either.
| 2025 | 2026 | |
|---|---|---|
| Top income tax rate | None | None |
| Standard deduction (single) | — | — |
| State tax on $85,000 of 1099 profit | $0 | $0 |
| Take-home on a $75,000 salary | $61,314 | $61,593 |
Each year uses that year's federal and South Dakota rules, so the take-home row also reflects federal changes. Federal changes · All data updates
Sources: South Dakota revenue department, Tax Foundation, State Individual Income Tax Rates and Brackets, IRS Rev. Proc. 2025-32. See our methodology.
South Dakota 1099 tax FAQ
Does South Dakota have a state income tax?
South Dakota does not tax wages or self-employment income. Freelancers there pay only federal income tax and self-employment tax.
How much should a freelancer in South Dakota set aside for taxes?
A single filer with $85,000 of 1099 profit and no other income should set aside about 21% of every payment in 2026: $12,010 self-employment tax, $5,790 federal income tax and $0 South Dakota income tax. Use the calculator for your own income, expenses and filing status.