{"place":"South Dakota","kind":"state","asOf":"2026-10-07","url":"https://gigaverse.ai/local/south-dakota","state":{"code":"SD","name":"South Dakota","slug":"south-dakota","incomeTax":{"type":"none","flatRate2026":null,"lowestRate2026":null,"topRate2026":null,"topRateStartsSingle":null,"notes":"South Dakota has no personal income tax.","source":"https://dor.sd.gov/individuals/taxes/"},"estimatedTax":null,"minimumWage2026":{"standard":11.85,"tippedCash":5.925,"tipCreditAllowed":true,"notes":"Effective January 1, 2026. The tipped cash wage is half the minimum wage ($5.925 per the state; USDOL rounds it to $5.93), and employers must make sure tipped workers earn at least the full minimum wage.","source":"https://dlr.sd.gov/employment_laws/minimum_wage.aspx"},"soleProprietorTaxes":[{"name":"Contractor's excise tax","summary":"This is a 2% tax on gross receipts from construction services and from building, installing, or repairing fixtures to real property. Anyone doing this work must hold a South Dakota contractor's excise tax license.","source":"https://dor.sd.gov/businesses/taxes/contractors-excise-tax/"},{"name":"Sales tax on services","summary":"The 4.2% state sales tax applies to gross receipts from retail sales, including services unless specifically exempt. Businesses with a physical presence in South Dakota need a sales tax license whatever their size.","source":"https://dor.sd.gov/businesses/taxes/sales-use-tax/"}],"contractorLaws":[{"name":"Unemployment two-part independent contractor test (SDCL 61-1-11)","summary":"Paid work counts as employment unless the Department of Labor and Regulation is satisfied that the worker is free from control or direction, both under the contract and in fact, and is customarily engaged in an independent trade or business.","source":"https://sdlegislature.gov/api/Statutes/61-1-11.html"}],"notes":"The state rideshare law (SDCL 32-40) covers driver screening and insurance but does not set driver pay or classification rules (https://sdlegislature.gov/api/Statutes/32-40.html)."},"stateRetirementProgram":{"state":"South Dakota","code":"SD","programName":null,"status":"none","employerMandate":null,"mandateMin":null,"keyDates":null,"covers1099":null,"selfEnroll":"n/a","sourceUrl":"https://cri.georgetown.edu/states","note":"No enacted state-facilitated program.","lastVerified":"2026-09-09"},"city":null,"guides":[{"audience":"consultants","url":"https://gigaverse.ai/local/south-dakota/consultants"},{"audience":"freelancers","url":"https://gigaverse.ai/local/south-dakota/freelancers"},{"audience":"content-creators","url":"https://gigaverse.ai/local/south-dakota/content-creators"},{"audience":"entrepreneurs","url":"https://gigaverse.ai/local/south-dakota/entrepreneurs"},{"audience":"gig-workers","url":"https://gigaverse.ai/local/south-dakota/gig-workers"},{"audience":"tipped-workers","url":"https://gigaverse.ai/local/south-dakota/tipped-workers"},{"audience":"tradespeople","url":"https://gigaverse.ai/local/south-dakota/tradespeople"}],"disclaimer":"Educational information for 2026, not tax, legal or investment advice. Sources are cited per fact."}