South Dakota Self-Employment Tax Calculator

Calculate your self-employment tax, federal income tax, and South Dakota state income tax as a freelancer or 1099 contractor. South Dakota has no state income tax.

Annual Tax Breakdown

1099 Income
$85,000
Business Expenses
-$10,000
Net Profit
$75,000
Net Earnings (92.35%)(SE tax base)
$69,263
Social Security (12.4%)
-$8,589
Medicare (2.9%+)
-$2,009
Total SE Tax
-$10,597
SE Deduction (50%)(reduces income tax)
$5,299
Federal Income Tax
-$6,794
State Income Tax
-$0
Total Tax Owed
$17,391

Summary

Total Income
$75,000
Total Taxes
-$17,391
After-Tax Income
$57,609
Effective Tax Rate(on total income)
23.2%

Quarterly Estimated Payments

Q1 (Jan-Mar)Due April 15
$4,348
Q2 (Apr-May)Due June 15
$4,348
Q3 (Jun-Aug)Due September 15
$4,348
Q4 (Sep-Dec)Due January 15 (next year)
$4,348
Each Quarterly Payment
$4,348

Tax Breakdown

See your complete freelancer financial picture

Your estimated quarterly tax payment is $4,348. Model your freelance income alongside expenses, savings, and investments in the full simulator.

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South Dakota Tax Overview for Freelancers

South Dakota has no state income tax. Combined with low property taxes and cost of living, South Dakota is very tax-friendly. Self-employed individuals in South Dakota pay federal self-employment tax (15.3%) plus federal income tax, and no state income tax — giving South Dakota freelancers a significant advantage.

No state income taxNo corporate income taxVery low cost of livingGrowing financial services in Sioux Falls

Self-Employment Taxes in South Dakota

If you work as a freelancer or independent contractor in South Dakota, your tax situation involves multiple layers: federal self-employment tax, federal income tax, and South Dakota state income tax. Understanding how each component works helps you plan your quarterly estimated payments and maximize your deductions.

South Dakota Income Tax for Freelancers

South Dakota has no state income tax. Combined with low property taxes and cost of living, South Dakota is very tax-friendly.

Cost of Living for Freelancers in South Dakota

South Dakota's cost of living is about 5% below the national average. As a freelancer in South Dakota, your effective earnings depend not just on your tax rate but also on what your after-tax income can buy. Consider local costs for housing, coworking spaces, and daily expenses when setting your rates.

Financial Tips for South Dakota Freelancers

  • No state income tax keeps more money in your pocket
  • South Dakota's very low cost of living means your salary goes further
  • South Dakota has no corporate income tax — beneficial for business owners
  • Sioux Falls has a growing financial services and healthcare sector

Key South Dakota Tax Features

  • No state income tax
  • No corporate income tax
  • Very low cost of living
  • Growing financial services in Sioux Falls

Model Your South Dakota Freelance Finances Over Time

This calculator shows your South Dakota tax bill. Trajectoryy's full simulator models your freelance income alongside expenses, savings, investments, and more — month by month for years into the future.

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Compare South Dakota with Other States

North Dakota1.95% top rateMinnesota9.85% top rateIowa5.7% top rateCalifornia13.3% top rateNew York10.9% top rateNew Jersey10.75% top rate

Frequently Asked Questions

How is self-employment tax calculated in South Dakota?
South Dakota has no state income tax, so self-employed workers in South Dakota only pay federal self-employment tax (15.3% on 92.35% of net earnings) and federal income tax. This makes South Dakota one of the most favorable states for freelancers and 1099 contractors.
How much will I owe in quarterly taxes as a freelancer in South Dakota?
Your quarterly estimated tax payment in South Dakota depends on your total tax liability — including SE tax, federal income tax, and no state income tax (since South Dakota has none). Use the calculator above to estimate your quarterly payments. As a general rule, freelancers should set aside 25-35% of their net income for taxes.
What business deductions are available for South Dakota freelancers?
Freelancers in South Dakota can deduct the same federal business expenses as in any state: home office, equipment, software, health insurance, vehicle expenses, and more. Since South Dakota has no state income tax, deductions only reduce your federal tax liability.
Does South Dakota have any special taxes for self-employed workers?
No. South Dakota has no state income tax and no additional self-employment taxes. You only need to worry about federal self-employment tax and federal income tax.
Should I form an LLC or S-Corp as a freelancer in South Dakota?
The decision to form an LLC or S-Corp in South Dakota depends on your income level. Generally, if your net self-employment income exceeds $50,000-$60,000, an S-Corp election may save you money by allowing you to pay yourself a reasonable salary (subject to FICA/Medicare) while taking the rest as distributions (not subject to SE tax). Consult a South Dakota tax professional for advice specific to your situation.

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Gross Income$65,000
Federal Tax-$7,462
State Tax-$2,384
FICA + Medicare-$4,973
Net Pay$50,181
Monthly$4,182/mo
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Monthly+$500
Return8%/yr
Contributions$190,000
Earnings$555,620
Final Balance$745,620
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Contribution$500/mo
Employer Match+$250/mo
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Real Cost$110/mo
30yr Growth$1,021,430
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