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South Dakota Nanny Tax Guide

South Dakota has no state income tax, making it one of the simplest states for household employers. You only need to manage federal taxes and state unemployment insurance.

State Income Tax
State Unemployment
Disability Insurance
Paid Family Leave

Minimum Wage

$11.50/hour

SUTA Rate Range

0.0% - 9.5%

Key Things to Know

  • No state income tax
  • State minimum wage is $11.50/hour
  • No disability or paid leave requirements
  • One of the simplest states for compliance

South Dakota Employer Requirements

No State Income Tax

South Dakota has no state income tax. You only need to handle federal income tax withholding if your employee requests it on their W-4.

State Unemployment Insurance

Employers pay SUI tax on the first $15,000 of wages. New employer rate is 1.2%, with rates ranging from 0.0% to 9.5% based on experience.

Workers' Compensation

South Dakota requires workers' compensation for most employees. Verify requirements for household employers with the state.

What will it cost?

Wondering what you'll actually owe as a South Dakota employer? Adjust the numbers below to get a quick estimate of your annual tax obligations.

This guide is for informational purposes only and should not be considered legal or tax advice. Tax laws change frequently. Always verify current requirements with your state's tax agency or consult with a qualified tax professional.

Verified accurate as of February 2026Sources: South Dakota tax agency, IRS Publication 926

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