Minimum wage in South Dakota, 2000–2027

Minimum wage in 2026

$11.85 an hour1

In force since Jan 1, 2026.

On January 1, 2027

$12.30 an hour1

Up $0.45 from today.

Tipped employees

$5.93 an hour in cash2

Employers may count up to $5.92 an hour of tips toward the minimum wage. Tipped: more than $35 a month in tips.

Overtime

Time and a half after 40 hours a week (federal FLSA)3

For covered employees who are not exempt.

The South Dakota minimum wage rose from $5.15 in 2000 to $11.85 in 2026; $12.30 from Jan 1, 2027

$0$5$10$15200020052010201520202027$7.25$12.30

Line chart of the South Dakota minimum wage against the federal minimum: $5.15 in 2000, $7.25 in 2010, $9.30 in 2020, $11.85 in 2026, and $12.30 in 2027. The federal minimum was $5.15 in 2000 and $7.25 in 2026.

Data: U.S. Department of Labor, Wage and Hour Division and South Dakota Department of Labor & Regulation, as of Nov 2, 2026. CC BY 4.0 · LeadChange Group Hiring Cost Atlas. 2000–2024: each year's rate as the U.S. DOL table prints it (2025 is not in its table, so the lines break there). 2026: the rate in force when checked; 2027: the rate set for January 1.
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The South Dakota minimum wage rose from $5.15 in 2000 to $11.85 in 2026; $12.30 from Jan 1, 2027. LeadChange Group Hiring Cost Atlas; Data: U.S. Department of Labor, Wage and Hour Division and South Dakota Department of Labor & Regulation, as of Nov 2, 2026. CC BY 4.0. https://leadchangegroup.com/guides/minimum-wage-by-state/south-dakota/#minimum-wage-history

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Every year in the DOL table
The South Dakota minimum wage rose from $5.15 in 2000 to $11.85 in 2026; $12.30 from Jan 1, 2027: every year of the U.S. Department of Labor table
YearState rateFederal rate
196817.00 - 20.00/wk$1.15 & $1.60
19701.00$1.30 & $1.60
19721.00$1.60
19762.00$2.20 & $2.30
19792.30$2.90
19802.30$3.10
19812.30$3.35
19882.80$3.35
19913.80$3.80
19924.25$4.25
19944.25$4.25
19964.25$4.25
19974.25$4.75
19985.15$5.15
20005.15$5.15
20015.15$5.15
20025.15$5.15
20035.15$5.15
20045.15$5.15
20055.15$5.15
20065.155.15
20075.155.15
20085.855.85
20096.556.55
20107.257.25
20117.257.25
20127.257.25
20137.257.25
20147.257.25
20158.507.25
20168.557.25
20178.657.25
20188.857.25
20199.307.25
20209.307.25
20219.457.25
20229.957.25
202310.807.25
202411.207.25

As printed by the U.S. Department of Labor (“...” means no state rate applied).4

What a full-time minimum-wage employee costs in South Dakota

At $11.85 an hour for 40 hours a week, a new employer with 10 staff pays $24,648 in wages and $2,386 on top (9.7%) in payroll taxes and workers' comp. At the 2027 rate of $12.30 with 2026 payroll tax rates: $28,052 a year.

Wages (2,080 paid hours a year)
$24,648
Social Security (employer share)6.2%5 of $24,648
$1,528
Medicare (employer share)1.45%6 of $24,648
$357
FUTA (federal unemployment tax)0.6% (after the full 5.4% state credit)7 of $7,0007
$42
State unemployment insurance (new employer)1.2%8 of $15,0008
$180
Workers' compensation (benchmark index rate)$1.13 per $100 of payroll9
$279
Total a year
$27,034

If you also offer single health coverage, the average employer here pays about $7,255 more a year: a $8,985 average premium10 less $1,730 paid by the employee10.

Change the inputs in the South Dakota employer cost calculator

Frequently asked questions

What is the minimum wage in South Dakota in 2026?

$11.85 an hour since Jan 1, 2026: $24,648 a year at full time.

What will the minimum wage be in South Dakota in 2027?

$12.30 an hour from Jan 1, 2027, after $11.85 an hour in 2026: $25,584 for a full-time year.

What is the minimum wage for tipped employees in South Dakota?

$5.93 an hour in cash, with up to $5.92 of tips counted toward South Dakota's $11.85.

How much does a minimum-wage employee cost an employer in South Dakota?

About $27,034 a year full time at $11.85: $24,648 of pay plus $2,386 on top, $2,108 in payroll taxes and $279 in workers' comp, before any health coverage.

How has the South Dakota minimum wage changed since 2000?

The South Dakota minimum wage rose from $5.15 in 2000 to $11.85 in 2026; $12.30 from Jan 1, 2027. On the way: $7.25 in 2010 and $9.30 in 2020, per the U.S. DOL.

Sources

The 11 pages this page's facts come from, with the day we last checked each one. The numbers beside the figures above link here.

Quotes from the sources
  1. South Dakota Department of Labor & Regulation dlr.sd.gov/employment_laws/minimum_wage.aspx“The minimum wage for non-tipped employees in South Dakota is $11.85/hour . (Effective Jan. 1, 2026.)” “Effective Jan. 1, 2027 , the minimum wage for non-tipped employees in South Dakota will be $12.30/hour .”
  2. U.S. Department of Labor, Wage and Hour Division dol.gov/agencies/whd/state/minimum-wage/tipped“Definition of Tipped Employee by Minimum Tips received (monthly unless otherwise specified) … State requires employers to pay tipped employees a minimum cash wage above the minimum cash wage required under the federal Fair Labor Standards Act ($2.13/hour) … South Dakota $11.85 50% of the applicable minimum wage ($5.92) $5.93 More than $35”
  3. U.S. Department of Labor, Wage and Hour Division Overtime Pay - US Department of Labor“Unless exempt, employees covered by the Act must receive overtime pay for hours worked over 40 in a workweek at a rate not less than time and one-half their regular rates of pay.”
  4. U.S. Department of Labor, Wage and Hour Division Changes in Basic Minimum Wages in Non-Farm Employment Under State Law: Selected Years 1968 to 2024“South Dakota 17.00 - 20.00/wk 1.00 1.00 2.00 2.30 2.30 2.30 … South Dakota 2.80 3.80 4.25 4.25 4.25 4.25 5.15 … South Dakota 5.15 5.15 5.15 5.15 5.15 5.15 5.15 … South Dakota 5.15 5.85 6.55 7.25 7.25 7.25 7.25 … South Dakota 7.25 8.50 8.55 8.65 8.85 9.30 … South Dakota 9.30 9.45 9.95 10.80 11.20” “Federal (FLSA) $1.15 & $1.60 $1.30 & $1.60 $1.60 $2.20 & $2.30 $2.90 $3.10 $3.35 … Federal (FLSA) $3.35 $3.80 $4.25 $4.25 $4.25 $4.75 $5.15 … Federal (FLSA) $5.15 $5.15 $5.15 $5.15 $5.15 $5.15 5.15 … Federal (FLSA) 5.15 5.85 6.55 7.25 7.25 7.25 7.25 … Federal (FLSA) 7.25 7.25 7.25 7.25 7.25 7.25 … Federal (FLSA) 7.25 7.25 7.25 7.25 7.25”
  5. Internal Revenue Service IRS Publication 15 (Circular E), Employer's Tax Guide“For 2026, the social security tax rate is 6.2% (amount withheld) each for the employer and employee (12.4% total).”
  6. Social Security Administration ssa.gov/oact/cola/cbb.html“Tax rates under the HI program are 1.45 percent for employees and employers, each, and 2.90 percent for self-employed persons.”
  7. Internal Revenue Service Topic no. 759, Form 940 – FUTA tax (IRS)“If you're entitled to the maximum 5.4% credit, the FUTA tax rate after credit is 0.6%.” “FUTA tax rate: The FUTA tax rate is 6.0%. The tax applies to the first $7,000 you paid to each employee as wages during the year.”
  8. U.S. Department of Labor, Employment and Training Administration oui.doleta.gov/unemploy/content/sigpros/2020-2029/January2026.pdf“New employer rate shown is the base rate. … SD … 1.20%” “SD … $15,000”
  9. Oregon Department of Consumer and Business Services oregon.gov/dcbs/reports/cost/Pages/premium-index-rates.aspx“Premium index rate: $1.00-$1.25 … State Index rate Percent of study median … 22 25 South Dakota 1.13 103%”
  10. Agency for Healthcare Research and Quality (MEPS-IC) meps.ahrq.gov/mepsweb/data_stats/summ_tables/insr/state/series_2/2025/ic25_iia_f.pdf“Table II.C.1 Average total single premium (in dollars) per enrolled employee … Division and State Total … South Dakota 8,985 9,299 8,104 8,700 8,825 9,313 7,990 9,225” “Table II.C.2 Average total employee contribution (in dollars) per enrolled employee for single coverage … Division and State Total … South Dakota 1,730 2,266 * -- 2,003 1,672 1,510 2,002 1,665”
  11. U.S. Department of Labor, Wage and Hour Division dol.gov/agencies/whd/minimum-wage/state“South Dakota … Basic Minimum Rate (per hour): $11.85”