How the South Dakota 1099 tax calculator works
South Dakota has no personal income tax, so a freelancer there pays two federal taxes on net profit, meaning what clients paid minus deductible business expenses: self-employment tax for Social Security and Medicare, and federal income tax. The national 1099 tax calculator shows how each is figured, with the formulas, the 2026 brackets and worked examples at several incomes.
At $100,000 of profit, a single filer owes $14,129.55 of self-employment tax and $8,235.00 of federal income tax, $22,364.55 in all (22.4% of profit). Those amounts are the same in every state without an income tax; the calculator above works them out for your own numbers.
Sales tax on services in South Dakota
South Dakota has no income tax, but its 4.2% state sales tax applies to the gross receipts of retail sales, including the sale of services, and cities add their own municipal sales tax on top. The Department of Revenue says any business with a physical presence in South Dakota must obtain a sales tax license.
Whether you charge tax on what you bill depends on whether your service is taxable, so check the Department of Revenue's sales and use tax guide before you send your first invoice.
South Dakota vs. neighboring states
The same $100,000 single freelancer in South Dakota and nearby states:
| State | State income tax | Total tax | Take-home pay |
|---|---|---|---|
| South Dakota | $0.00 | $22,364.55 | $77,635.45 |
| Wyoming | $0.00 | $22,364.55 | $77,635.45 |
| North Dakota | $553.02 | $22,917.57 | $77,082.43 |
| Iowa | $2,879.74 | $25,244.29 | $74,755.71 |
| Nebraska | $3,349.01 | $25,713.56 | $74,286.44 |
| Montana | $3,889.94 | $26,254.49 | $73,745.51 |
| Minnesota | $4,796.20 | $27,160.75 | $72,839.25 |
You generally owe state income tax where you live and work, not where your clients are.
Every state's figure for one example freelancer is in the 1099 tax by state table, which you can sort and download.
Selling a rental property in South Dakota? The South Dakota rental property capital gains tax calculator works out the federal and state tax on the sale, depreciation recapture included.
States with similar income taxes
South Dakota is one of 9 states with no personal income tax. What the closest of them still require:
- Nevada: Nevada's business license and Commerce Tax.
- New Hampshire: New Hampshire's business profits and enterprise taxes.
- Tennessee: Tennessee's business tax.
- Texas: the Texas franchise tax.
Quarterly estimated taxes for South Dakota freelancers
With no South Dakota income tax, your quarterly estimated payments go to the IRS only, on Form 1040-ES, due April 15, June 15 and September 15, 2026, and January 15, 2027. The "Quarterly payments" view above splits your estimate into equal installments, and the national page explains the safe-harbor rules that avoid an underpayment penalty.
The bottom line
A South Dakota freelancer's 1099 tax bill is mostly federal: on $100,000 of net profit, self-employment tax is $14,129.55 and federal income tax $8,235.00, and South Dakota adds no income tax on earned income. All in, that is $22,364.55, or 22.4% of profit.
Set aside about that share of every payment, pay the IRS each quarter, and rerun the South Dakota 1099 tax calculator when your income changes.
Frequently asked questions
How much should I set aside for taxes as a freelancer in South Dakota?
A single freelancer in South Dakota with $75,000 of net profit would owe about $15,494.90 in 2026, or 20.7%; at $100,000 the estimate is $22,364.55 (22.4%). Setting aside a similar share of every payment you receive, and paying it in quarterly installments, keeps you from facing a large bill and underpayment penalties at filing time.
Does South Dakota have a state income tax?
No. South Dakota has no personal income tax. But its 4.2% state sales tax applies to services as well as goods, so a freelancer may need to charge it.
Do I still pay self-employment tax and estimated tax in South Dakota?
Yes. Both are federal, so they apply in South Dakota as in every state: South Dakota self-employment tax is 15.3% (12.4% for Social Security and 2.9% for Medicare) on 92.35% of net profit, and you pay it with federal income tax through quarterly estimated tax payments due April 15, June 15 and September 15, 2026, and January 15, 2027, so for income tax your South Dakota estimated tax payments all go to the IRS. The national 1099 tax calculator explains both.
Sources and further reading
- Self-employment tax (Social Security and Medicare taxes) (opens in a new tab), Internal Revenue Service
- IRS releases tax inflation adjustments for tax year 2026, including amendments from the One, Big, Beautiful Bill (opens in a new tab), Internal Revenue Service
- Qualified business income deduction (opens in a new tab), Internal Revenue Service
- Estimated taxes (opens in a new tab), Internal Revenue Service
- Contribution and benefit base (opens in a new tab), Social Security Administration
- 2026 State Income Tax Rates and Brackets (opens in a new tab), Tax Foundation
- Sales & Use Tax (opens in a new tab), South Dakota Department of Revenue
- South Dakota Department of Revenue (opens in a new tab), State of South Dakota
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