South Dakota minimum wage
Minimum wage in South Dakota, in effect since January 1, 2026
$11.85 an hour
That is $4.60 above the federal minimum of $7.25. Employers in South Dakota pay the higher state rate.
Next increase: none announced as of October 9, 2026. Adjusted each January 1 by the CPI increase, rounded up to the nearest 5 cents; the new rate is announced by October 15.
Tipped employees
Employers in South Dakota can pay tipped employees a cash wage of $5.93 an hour, taking a tip credit of up to $5.93, as long as tips bring the employee to at least $11.85 for every hour worked. If they don't, the employer makes up the difference.
How future increases are set
Adjusted each January 1 by the CPI increase, rounded up to the nearest 5 cents; the new rate is announced by October 15.
Exceptions and details
- 2027 rate not yet posted on SD DLR (due by Oct. 15, 2026).
- Exemptions include seasonal amusement or recreation establishments, babysitters and outside salespersons; training wage under SDCL 60-11-4.1.
Common questions
- What is the minimum wage in South Dakota?
- $11.85 an hour, in effect since January 1, 2026.
- What is the tipped minimum wage in South Dakota?
- $5.93 an hour in cash wages, provided tips bring the employee up to $11.85 an hour.
- When does the South Dakota minimum wage go up?
- No increase had been announced as of October 9, 2026.
Running payroll in South Dakota?
Recent changes
Last verified against the official source on October 9, 2026.
No changes recorded since we started tracking this page.
Sources
- South Dakota Department of Labor & Regulation · data as of January 1, 2026 · last checked October 9, 2026
We copy figures from official sources and re-check them against the source before every update. See our methodology. This is general information, not legal advice.