SD
No State Income Tax
None
Top state income tax rate
N/A
SALT deduction impact
OBBBA in South Dakota: What You Need to Know
South Dakota has no state income tax. All OBBBA federal savings apply in full.
OBBBA Provision Impact for South Dakota Residents
| OBBBA Provision | Federal Impact | SD State Impact |
|---|---|---|
| Tip Income Exemption ($25k) | ✅ Exempt from federal income tax | ✅ No state income tax |
| Overtime Exemption | ✅ All OT exempt from federal tax | ✅ No state income tax |
| SALT Cap ($40k married) | ✅ Deduct up to $40k on federal return | N/A — no state income tax |
| Child Tax Credit ($2,500) | ✅ Federal CTC expanded | No direct state effect |
| Senior Deduction ($4,000) | ✅ Additional $4k deduction | N/A |
| Trump Accounts | ✅ $1,000 federal seed + tax-free growth | Federal program — state tax treatment varies |
Calculate Your South Dakota Tax Savings
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