Current minimum wage in South Dakota
South Dakota's minimum wage is $11.85 an hour in 2026 and is adjusted each year for inflation under a 2014 ballot measure. Tipped workers must receive at least half the minimum in cash wages.
The rate rose from $11.50 (effective January 1, 2025) to $11.85 on January 1, 2026, an increase of $0.35 an hour or $728 a year for a full-time worker.
Next scheduled change
Adjusted each January 1 for inflation; the state announces the 2027 rate no later than October 15, 2026.
Tipped minimum wage
Employers may pay tipped employees a cash wage of $5.93 an hour and count tips toward the rest, as long as total pay reaches $11.85 an hour. The federal tipped cash wage is $2.13. Tipped workers must be paid at least half the minimum wage, $5.925 an hour, and employers must make sure wages plus tips reach $11.85.
What minimum wage pays in South Dakota
| Hours per week | Weekly pay | Yearly pay |
|---|---|---|
| 20 hours | $237.00 | $12,324 |
| 25 hours | $296.25 | $15,405 |
| 30 hours | $355.50 | $18,486 |
| 35 hours | $414.75 | $21,567 |
| 40 hours | $474.00 | $24,648 |
After federal taxes, a full-time minimum wage worker who files single keeps about $21,908 a year, or $843 per biweekly check. Run your own numbers with the South Dakota paycheck calculator or see the full breakdown for $12 an hour.
Overtime rules
Follows the federal 40-hour weekly overtime rule.
City and county minimum wages
No local minimum wages.
Exceptions and special rates
State law allows a training wage and exempts some seasonal amusement or recreation jobs, babysitters and outside sales workers.
How South Dakota compares
South Dakota ranks #26 of 51 for its minimum wage. The federal minimum wage is $7.25 an hour.
Frequently asked questions
What is the minimum wage in South Dakota in 2026?
The South Dakota minimum wage is $11.85 an hour as of January 1, 2026.
What is the tipped minimum wage in South Dakota?
Employers in South Dakota may pay tipped workers a cash wage of $5.93 an hour, as long as tips bring total pay to at least $11.85. Tipped workers must be paid at least half the minimum wage, $5.925 an hour, and employers must make sure wages plus tips reach $11.85.
When does the South Dakota minimum wage go up next?
Adjusted each January 1 for inflation; the state announces the 2027 rate no later than October 15, 2026.
How much is minimum wage in South Dakota per year?
At $11.85 an hour, a 40-hour week pays $474 and a full year pays $24,648 before taxes. A single filer keeps about $21,908 after federal taxes.
How does overtime work in South Dakota?
Follows the federal 40-hour weekly overtime rule.