South Dakota Estimated Tax Payments (2026)

Do you owe South Dakota state estimated taxes?

No. South Dakota has no individual income tax, so there are no South Dakota quarterly estimated payments on your 1099 or self-employment income.

Do self-employed people in South Dakota owe other state taxes?

Often, yes: sales tax. South Dakota taxes all services unless the law exempts them, so many self-employed people, including consultants, computer and software professionals, accountants, and engineers, charge 4.2% state sales tax plus 1% to 2% city tax. Health care, education, and a few other services are exempt, and construction work pays a 2% contractor's excise tax instead. You need a free sales tax license from the South Dakota Department of Revenue before you sell a taxable service. The state rate is scheduled to go back to 4.5% on July 1, 2027.

What federal estimated taxes do self-employed people in South Dakota still owe?

Every self-employed South Dakota filer still owes federal estimated taxes if they expect to owe $1,000 or more for 2026 after withholding. That includes the 15.3% self-employment tax (12.4% Social Security + 2.9% Medicare) on 92.35% of your net profit, plus federal income tax. Federal payments are due April 15, June 15, September 15, and January 15, and you can pay through IRS Direct Pay.

How much should self-employed people in South Dakota set aside for taxes?

Most self-employed people in South Dakota should set aside 20% to 25% of their net profit for federal taxes. On $50,000 of profit, the 15.3% self-employment tax is about $7,065 and federal income tax about $2,667, for a total of about $9,732, or 19% of your profit. Sales tax you collect from customers is separate. Use the calculator above for your exact federal quarterly amount.

What deductions lower your South Dakota estimated taxes?

Because estimated taxes are based on your net profit, every business write-off you claim lowers what you owe each quarter. Common deductions for 1099 workers, reported on Schedule C, include the home-office deduction, car mileage, phone and internet, software, and supplies. You can also deduct half of your self-employment tax, and the federal Qualified Business Income (QBI) deduction can remove up to 20% of your qualified business income.

Keeper's 1099 tax calculator estimates your bill after deductions, and our write-off guides list the deductions for your line of work.

Note: Figures are current for the 2026 tax year and are for planning, not tax advice.

How to file quarterly taxes in South Dakota

In South Dakota, “quarterly taxes” just means your federal estimated payments to the IRS — there’s no state income tax to file. Here’s how to handle them.

1. Confirm you need to pay. You make federal estimated payments when enough of your income isn’t having tax withheld — 1099 or freelance work, investment income, or other untaxed income. South Dakota has no individual income tax, so there's no state estimated payment to make.
2. Calculate your federal estimate. Use the Form 1040-ES worksheet (or tax software). Estimate your full-year income, add your federal income tax and self-employment tax, subtract anything already withheld from a paycheck, and split the rest across the year. The estimate at the top of this page gives you a starting number.
3. Pay the IRS. Pay through IRS Direct Pay (or EFTPS) and choose the estimated tax / Form 1040-ES option. Select tax year 2026 and save the confirmation number. This money counts only toward your federal taxes — there's no separate South Dakota payment to make.
4. Repeat on each deadline. For 2026, federal estimated payments are due April 15, 2026, June 15, 2026, September 15, 2026, and January 15, 2027. With no South Dakota income tax, you’re done for the quarter once the federal payment posts.

Steps reflect 2026 rules and are for planning, not tax advice.