Minimum Wage in South Dakota (SD)
The minimum wage in South Dakota is $11.20 per hour , effective January 1, 2025. This is $3.95 (54.48%) above the federal minimum wage of $7.25. The tipped minimum wage is $5.60 per hour. Employers may pay tipped employees $5.60/hr in cash wages if tips bring total compensation to at least the minimum wage. South Dakota adjusts minimum wage annually based on CPI. Tipped wage is 50% of minimum.
Minimum Wage by City in South Dakota
The table below shows the minimum wage for 2 cities in South Dakota. No cities currently have local minimum wages above the state rate of $11.20/hr.
| City | Minimum Wage | Annual (Full-Time) | vs. State Rate | vs. Federal |
|---|---|---|---|---|
| Sioux Falls | $11.20/hr | $23,296 | Same | +$3.95 |
| Rapid City | $11.20/hr | $23,296 | Same | +$3.95 |
How South Dakota Compares to Other States
Below is a comparison of South Dakota with five states that have similar minimum wage rates. This comparison helps illustrate where South Dakota stands nationally.
| State | Minimum Wage | Tipped Wage | Annual Full-Time |
|---|---|---|---|
| South Dakota (SD) | $11.20/hr | $5.60/hr | $23,296 |
| Minnesota (MN) | $11.13/hr | $11.13/hr | $23,150 |
| Arkansas (AR) | $11.00/hr | $2.63/hr | $22,880 |
| Ohio (OH) | $10.70/hr | $5.35/hr | $22,256 |
| Montana (MT) | $10.55/hr | $10.55/hr | $21,944 |
| Alaska (AK) | $11.91/hr | $11.91/hr | $24,773 |
Frequently Asked Questions About South Dakota Minimum Wage
What is the minimum wage in South Dakota in 2026?
The minimum wage in South Dakota is $11.20 per hour as of January 1, 2025. This is $3.95 above the federal minimum wage of $7.25. A full-time worker at this rate earns approximately $23,296 per year before taxes.
What is the tipped minimum wage in South Dakota?
The tipped minimum wage in South Dakota is $5.60 per hour. Employers can use a tip credit of $5.60/hr, paying tipped employees a cash wage of $5.60/hr, as long as tips bring total compensation to at least $11.20/hr.
How much does a minimum wage worker earn per year in South Dakota?
A full-time minimum wage worker in South Dakota (40 hours/week, 52 weeks/year) earns approximately $23,296 per year before taxes. The federal minimum wage yields $15,080/year.
Find Your Exact Minimum Wage
Use our minimum wage lookup tool to find the exact rate for your specific city in South Dakota, or browse all 50 states to compare minimum wages across the country. Remember: the highest applicable rate (federal, state, or local) always applies.