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.

Standard rate
$11.85
since January 1, 2026
Tipped cash wage
$5.93
Max tip credit $5.93
Next change
None set
as of 2026
Federal minimum
$7.25
unchanged since 2009

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

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.

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Sources

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.