South Dakota Minimum Wage 2026
South Dakota's minimum wage of $11.85 in 2026 is about average in the United States, and it is significantly higher than than the base federal minimum wage of $7.25 still used in 20 states.
Federal 
South Dakota Assuming a standard 40-hour work week, the weekly minimum wage in South Dakota is $474. For full-time employees working 52 weeks per year, the annual minimum wage in South Dakota is $24.6K.
Based on $11.85/hr minimum
Based on $11.85/hr minimum
The minimum wage rate of South Dakota and its neighboring states ranges from $7.25 to $15, with an average of $10.55. South Dakota, at $11.85, has an above average hourly minimum wage within this group of states. Nebraska ($15) has higher hourly rates than South Dakota. Minnesota ($11.41), North Dakota ($7.25), and Wyoming ($7.25) have lower hourly rates than South Dakota.
South Dakota While the general minimum wage is $11.85 per hour in South Dakota, there are several exceptions where workers may legally receive less than this amount:
These employees have a minimum wage of 50% of the state minimum wage, or $5.925 per hour, provided they earn more than $35 per month in tips or other considerations.
Young workers, under the age of twenty, may be paid an 'opportunity wage'. This is a minimum wage of $4.25 per hour for only the first 90 days of employment.
South Dakota state minimum wage law does not apply to independent contractors.
Casual Babysitters employed in the home of their employer are exempt from state minimum wage legislation.
These employees, provided they spend at least 80% of their time away from their place of employment, are exempt from state minimum wage legislation.
Employees of establishments such as amusement or recreational establishments, organized camps, or religious or nonprofit educational conference centers that do not operate for more than seven months in a calendar year or where for any six months of the calendar year the average receipts of the establishment were not more than thirty-three and one-third percent of its average receipts for the other six months of the year are exempt from state minimum wage legislation.
South Dakota's cost of living index for 2025 is 91.9, which places it as the 40th most expensive state to live in the United States.
National 100
South Dakota 91.9
Assuming a standard 40-hour work week, the real wage in South Dakota, adjusted for the state’s cost of living index of 91.9, is approximately $12.89 per hour. This means that while the nominal minimum wage is $11.85 per hour, the purchasing power of those earnings is higher due to South Dakota's lower cost of living expenses. For full-time employees, the real weekly earnings amount to roughly $515.78, translating to an annual purchasing power of $26,820.46 when working 52 weeks per year.
Adjusted
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According to the most recent data, the median household income in the United States has seen a significant increase in 2023.
South Dakota’s minimum wage is set above the federal level and is automatically adjusted each year based on inflation under a voter-approved law passed in 2014. The annual increases are tied to the Consumer Price Index, ensuring the wage keeps pace with changes in the cost of living rather than remaining fixed. This system provides predictable, incremental adjustments without requiring new legislation each year.
