South Dakota Minimum Wage (2026)
Built & reviewed by Nandu Kannan · Overtime rules cited to primary statutes
South Dakota's minimum wage is $11.85 an hour in 2026. South Dakota's $11.85 is indexed to inflation each January.
South Dakota minimum-wage pay calculator
Pre-set to South Dakota's $11.85 minimum. Change the hours, add overtime, and see weekly, monthly and annual gross pay update instantly.
Gross pay before taxes, at South Dakota's minimum wage. Overtime at 1.5× the regular rate (federal FLSA); some states add daily overtime — see the state overtime calculator. Not payroll advice.
Tipped minimum wage in South Dakota
The tipped minimum cash wage in South Dakota is $5.92 an hour in 2026. Employers may claim a tip credit of up to $5.93 an hour against the full $11.85 minimum.
How the tip credit works: the employer pays the cash wage, and your tips count toward the minimum. If your cash wage plus tips don't add up to the full $11.85 for every hour worked, your employer must make up the difference.
South Dakota's tipped cash wage is set at half the full minimum wage.
Tipped rates as of January 2026, from the U.S. Department of Labor — Minimum Wages for Tipped Employees. Local and industry rules can differ and rates change — verify with your state labor office before relying on these figures.
When will South Dakota's minimum wage go up?
South Dakota raises its minimum wage automatically each year. Instead of a one-off increase, the rate is adjusted for inflation, so it goes up most years. South Dakota adjusts its minimum wage for inflation (CPI) every January 1, so it rises most years; the 2027 rate is set later in 2026 — indexed, rate set later.
Want to see the next change in every state? See our 2026–2027 minimum wage increases by state.
Scheduled increases verified as of June 2026, from the U.S. Department of Labor and the EPI Minimum Wage Tracker. Future inflation-indexed rates are set by the state later and are not predicted here. Dates and amounts can change — verify with your state labor office before relying on them.
South Dakota minimum wage vs. the federal minimum
The federal minimum wage is $7.25 an hour. South Dakota's effective minimum is $11.85 — $4.60 above the federal floor. Where state and federal minimums differ, employers must pay whichever is higher.
Minimum-wage pay & overtime
At $11.85 an hour, overtime (1.5×) is $17.77 per hour. 1.5× after 40 hours in a workweek (federal FLSA). No state daily overtime. Run your own numbers with the South Dakota overtime calculator or convert it to a yearly figure with the salary to hourly calculator.
Frequently asked questions
What is the minimum wage in South Dakota in 2026?
The minimum wage in South Dakota is $11.85 per hour as of 2026. South Dakota's $11.85 is indexed to inflation each January.
How much is South Dakota's minimum wage per year?
At $11.85 an hour, full-time (40 hours a week, 52 weeks) is about $24,648 a year before taxes, or $474 a week.
Is South Dakota's minimum wage higher than the federal minimum?
Yes. South Dakota's $11.85 is above the federal minimum of $7.25. When state and federal minimums differ, employers must pay the higher rate.
What is overtime pay on South Dakota's minimum wage?
Overtime is 1.5× your regular rate, so a minimum-wage worker at $11.85 earns $17.77 per overtime hour. 1.5× after 40 hours in a workweek (federal FLSA). No state daily overtime.
What is the tipped minimum wage in South Dakota?
The tipped minimum cash wage in South Dakota is $5.92 an hour in 2026. Employers may claim a tip credit of up to $5.93 an hour, but the cash wage plus tips must still reach the full $11.85 minimum — if it falls short, the employer must make up the difference.
Do tipped workers get full minimum wage in South Dakota?
Not always in direct cash. South Dakota lets employers pay a lower cash wage of $5.92 and count tips toward the minimum (a "tip credit"). But your cash wage plus tips must add up to at least the full $11.85 minimum for every hour — if it doesn't, your employer must pay the difference.
When does South Dakota's minimum wage increase?
South Dakota does not have a single fixed next increase — it adjusts its minimum wage for inflation automatically each year. South Dakota adjusts its minimum wage for inflation (CPI) every January 1, so it rises most years; the 2027 rate is set later in 2026 — indexed, rate set later.
What will South Dakota's minimum wage be in 2027?
South Dakota indexes its minimum wage to inflation, so the 2027 rate is set by the state late in 2026 and is expected to be modestly higher than $11.85 — the exact figure is not published yet.
Rate as of January 2026, from the U.S. Department of Labor. Cities and counties may set higher local minimums, and rates change — confirm with your state labor office. General information, not legal or payroll advice.
Related
What's a minimum-wage paycheck after taxes in South Dakota?
Minimum wage by state · South Dakota overtime · Overtime by state · Salary to Hourly
States with a similar minimum wage
Nevada — $12.00 · New Mexico — $12.00 · Minnesota — $11.41 · Arkansas — $11.00 · Ohio — $11.00