South Dakota Side Hustle Tax Calculator
South Dakota has no state income tax. Calculate your federal self-employment tax instantly.
Last updated: January 2026 · Data from IRS Rev Proc 2024-40
Excellent news for South Dakota side hustlers: Mount Rushmore State has no state income tax. Whether you're freelancing in Sioux Falls, running an online business from Rapid City, or driving for rideshare in Aberdeen, you won't owe any state income tax on your earnings. South Dakota is one of the most tax-friendly states for self-employed individuals.
How Side Hustle Taxes Work in South Dakota
South Dakota is one of nine states with no state income tax:
**What South Dakota side hustlers pay:** - **Federal self-employment tax**: 15.3% on net earnings - **Federal income tax**: 10% to 37% based on total income - **South Dakota state income tax**: $0
**Additional benefits:** - No corporate income tax - No personal property tax - No inheritance tax - State revenue comes from sales tax and other sources
What South Dakota Side Hustlers Owe
Let's say you're a single filer in Sioux Falls with a $48,000 W-2 job and $14,000 in side hustle income from freelance writing, with $2,000 in business expenses.
**Your estimated taxes on the side hustle:** - Net self-employment income: $12,000 - Federal SE tax (15.3% of 92.35%): ~$1,697 - Federal income tax on side income: ~$2,640 (22% bracket) - South Dakota state tax: $0 - **Total additional tax: ~$4,337**
Compare this to neighboring Minnesota where you'd owe an additional ~$816 in state taxes.
South Dakota Tax Deadlines 2025
Since South Dakota has no state income tax, you only track federal deadlines: - **Q1**: April 15, 2025 - **Q2**: June 16, 2025 - **Q3**: September 15, 2025 - **Q4**: January 15, 2026
Use IRS Form 1040-ES for federal quarterly estimated payments.
Common Deductions for South Dakota Freelancers
Even without state income tax, maximize federal deductions: - Home office deduction - Vehicle expenses (67 cents/mile for 2025) - Equipment and supplies - Professional services - The 20% QBI deduction is especially valuable with no state tax
South Dakota Side Hustle Tax FAQ
Does South Dakota have income tax on side hustles?
No, South Dakota has no state income tax at all. Your side hustle income is only subject to federal self-employment tax (15.3%) and federal income tax.
Do I need to file South Dakota state taxes?
No, since South Dakota has no state income tax, there's no state return to file. You only file federal taxes.
How does South Dakota compare to Minnesota?
South Dakota has a significant tax advantage. Minnesota's top rate is 9.85%, so South Dakota freelancers can save 6-10% on state taxes annually.
Related State Calculators
Like South Dakota, these states also have no state income tax, making them attractive for side hustlers and freelancers.
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This calculator provides estimates only. For personalized advice, consult a qualified tax professional.
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