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Taxes

state income tax

Most states levy an income tax on their residents that is in addition to the federal income tax. Laws vary from state to state but in most states the state income tax is a tax on the annual earnings of individuals, corporations, trusts, limited liability companies, and other legal entities.

There are nine states that do not have a state income tax—including Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. But New Hampshire levies a tax on capital gains and Washington state recently enacted a tax on extraordinary profits from the sale of financial assets over $250,000.

South Dakota is one of the few states in the United States that does not levy a state income tax on individuals or corporations. This means that residents and businesses in South Dakota are not required to pay state taxes on their annual earnings, whether those earnings come from wages, business income, or certain types of investments. However, this does not exempt them from federal income taxes, which they are still required to pay. South Dakota's lack of a state income tax is often cited as a benefit for individuals and businesses considering residency or operation within the state, potentially contributing to the state's economic appeal.

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Taxes

state income tax

Individual & Family Legal Plan

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South-Dakota State Code

South-Dakota State Code

Taxes

state income tax

Articles