CALCMONEY // SOCIAL SECURITY // SD
South Dakota does not tax Social Security benefits. Federal tax (up to 85% of benefits) still applies, but SD keeps its residents' SS income state-tax-free.
Calculate SS BenefitsNo
$1,900
$3,822/mo
$0
| Other Income | Federal SS Tax | SD State Tax | Net SS Income |
|---|---|---|---|
| $20,000/yr other | $0 | $0 | $22,800 |
| $40,000/yr other | $4,264 | $0 | $18,536 |
| $60,000/yr other | $4,264 | $0 | $18,536 |
| $80,000/yr other | $4,264 | $0 | $18,536 |
At the federal level, up to 85% of Social Security benefits are taxable if your provisional income exceeds $34,000 (single) or $44,000 (married). Provisional income is your adjusted gross income plus tax-exempt interest plus half your SS benefit.
South Dakota does not tax Social Security benefits at the state level. Federal taxation still applies based on provisional income. Retirees with significant 401k withdrawals or other income should plan Roth conversions to keep provisional income below the 85% threshold.
The 2026 maximum Social Security benefit at Full Retirement Age is $3,822/month ($45,864/year). Delaying to age 70 increases benefits by 8%/year past FRA, resulting in a $4,739/month maximum. The break-even age for delaying from 62 to 70 is typically around 81.