South Dakota Income Tax

South Dakota 1040 tax form?

South Dakota does not have a state 1040 tax form, however, residents living in the state of South Dakota may still need to file a Form 1040 or Form 1040-SR federal income tax return each year. The deadline for filing a federal form 1040 return for the 2023 tax year is April 15, 2024.

How can South Dakota have no state income tax?

The South Dakota state constitution prohibits the creation of a personal income tax on wages. South Dakota statutes regarding income tax law also restate that no income tax will be levied upon residents and citizens of the state. South Dakota state and local governments generate revenue elsewhere primarily from property tax, sales tax, and other non-income related business taxes.

How long do you have to live in South Dakota to avoid taxes?

Residency for tax purposes is demonstrated by whether or not an individual has taken steps to move into South Dakota, and, sever residency in a previous state or country. You may still need to file a full-year, part-year, or non-resident income tax return in your current state for the year you move to South Dakota.

If you are considering moving to South Dakota, remember that personal income taxes are just part of the overall tax burden. In the state of South Dakota, however, the overall cost of living is relatively low compared to other high tax states such as California, New Jersey, and New York.

How many states have no income tax?

South Dakota is one of nine states which do not levy a personal income tax on wages. Currently the no personal income tax states are Alaska, Florida , Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.