Minimum wage in South Dakota

South Dakota's basic minimum wage is $11.85 an hour. That is $4.60 above the federal minimum wage of $7.25. The rate is adjusted annually by a formula set in state law, so the figure here is the one DOL showed as of July 1, 2026. Employers may pay tipped employees a cash wage of $5.93 and count tips toward the rest, with a tip credit of up to $5.92. Against South Dakota's $11.85 floor for FLSA-covered employers, among its 6 neighbors Nebraska ($15.00) is higher and Minnesota ($11.41), Montana ($10.85), Iowa ($7.25), North Dakota ($7.25) and Wyoming ($7.25 floor; state rate $5.15) are lower.

Verified against the U.S. Department of Labor on (DOL's state table updated ). Source: State Minimum Wage Laws, Minimum Wages for Tipped Employees.

At a glance

Key minimum wage facts for South Dakota
ItemValue
State minimum wage$11.85
Against the federal $7.25$4.60 above federal
Floor for FLSA-covered employers$11.85 (the higher of the state and federal rates)
Scheduled changeAdjusted annually by a formula in state law (no amount listed by DOL)
Overtime threshold in state lawNone listed by DOL (the FLSA's 40-hour rule applies to covered employers)
Tipped cash wage$5.93
Maximum tip credit50% of the applicable minimum wage ($5.92)

Rates as DOL lists them

Basic minimum rates in South Dakota with their conditions
Rate per hourApplies to
$11.85No condition stated by DOL

Scheduled increases

DOL lists no dated increase for South Dakota but states that the rate is adjusted annually by a formula set in state law. The next figure is published by the state, usually before January 1 or July 1; this page shows the rate DOL carried on July 1, 2026.

Tipped employees

South Dakota requires a cash wage above the federal tipped minimum of $2.13; the employer may count tips toward the rest, up to the tip credit shown.

Tipped employee minimum wage in South Dakota
RowCombined cash and tip minimumMaximum tip creditMinimum cash wageTipped employee defined by monthly tips of
South Dakota$11.8550% of the applicable minimum wage ($5.92)$5.93More than $35

A dash means DOL left the cell blank. DOL's general footnote 1: Other additional deductions are permitted, for example for meals and lodging.

What DOL also notes

  • The minimum wage is adjusted annually based on a set formula.

Neighbors and the federal floor

Minimum wage in the states bordering South Dakota
StateState rateFloor for FLSA-covered employers
South Dakota$11.85$11.85
Nebraska$15.00$15.00
Minnesota$11.41$11.41
Montana$10.85$10.85
Iowa$7.25$7.25
North Dakota$7.25$7.25
Wyoming$5.15$7.25
Federal (FLSA)$7.25$7.25

More than one law can apply

DOL states that where federal, state and local minimum wage laws all cover an employer, the employer must pay the highest applicable rate. Whether a particular job is covered by the Fair Labor Standards Act, by South Dakota's law, or by a city or county ordinance depends on facts this site does not assess. City and county rates are not in DOL's table and are not shown here. This page describes published rates and is not legal advice; for how to raise an underpayment, see FastGuide.

Take-home pay and benefits calculators for South Dakota

FastCalc, a sister site, has these calculators for South Dakota. Each takes your own figures; this site computes nothing.

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