Commuter taxes 2026

Live in Iowa, work in South Dakota

Your work state has no tax on wages, so you pay only your home state.

State income tax: $3,148 a year

Living in Iowa and working in South Dakota, you'd pay about $3,148 in state income tax on $100,000 of wages.

Your work state has no tax on wages, so you pay only your home state.

Tax to South Dakota
$0
nonresident
Tax to Iowa
$3,148
resident
Total state tax
$3,148
State returns to file
1

State tax at different salaries

WagesTo SDTo IATotalIf you worked in IA
$50,000$0$1,248$1,248$1,248
$75,000$0$2,198$2,198$2,198
$100,000$0$3,148$3,148$3,148
$150,000$0$5,048$5,048$5,048
$250,000$0$8,848$8,848$8,848

Single filer, all wages earned in South Dakota, 2026 state tax rules, standard deductions. Local income taxes not included.

What to do

Local income taxes

Frequently asked questions

Do I pay South Dakota income tax if I live in Iowa?

No. Your work state has no tax on wages, so you pay only your home state.

Do I have to file taxes in both Iowa and South Dakota?

Usually you file only one state return (a resident return in Iowa), though some states still require a nonresident return to get a refund of any wrongly withheld tax.

Will I be taxed twice?

No. South Dakota doesn't tax your wages, so you pay only Iowa: about $3,148 on $100,000.

Related

Rules reviewed 2026-09-24 from state revenue departments and the Tax Foundation. Estimates only; confirm with each state's revenue department.