Retiring in South Dakota
Every figure below is sourced to South Dakota’s own publications and dated. Estimates only, and not tax advice.
Retirement tax by state
What your state actually takes from a 401(k) withdrawal, a pension, and Social Security — in dollars, not a yes/no list.
Brokerage account growth
Long-term index-fund growth after expense-ratio drag — and what your state takes from the gains at withdrawal.
Roth vs. Traditional
Decided on the two rates that actually govern it — yours now, and yours at withdrawal, in the state you'll retire in rather than the one you're in.
Contribution limit optimizer
2026 limits, employer match, the 60-63 super catch-up, and whether the Roth catch-up mandate applies to you.
Required minimum distribution
When your RMDs start under SECURE 2.0, how much this year's is, and what missing it costs.
Backdoor Roth pro-rata
What a backdoor Roth conversion would actually cost you in tax — the pro-rata rule most calculators only describe.
Self-directed IRA real estate (UDFI)
The tax a leveraged rental owes inside a self-directed IRA — computed at trust rates, not the rate you'd assume.
South Dakota at a glance
South Dakota has no state income tax, so none of your retirement income — 401(k) and IRA withdrawals, pensions, or Social Security — is taxed at the state level. Federal tax is a separate matter these pages do not model.
- South Dakota is one of the states with no individual income tax of any kind -- no wage tax, no interest-and-dividends tax, and no standalone capital gains tax.
- The Department of Revenue's own individual-taxes page lists the taxes an individual actually encounters here: sales and use tax, property tax, motor fuel excise, cigarette and tobacco excise, and alcohol taxes. No income tax return, rate schedule, filing threshold, or withholding table exists.
- South Dakota also eliminated its inheritance tax in 2001 and imposes no estate tax.