Live in South Dakota, work in Iowa
Your home state has no income tax, so there is no credit to offset the work state's tax. You pay the work state as a nonresident.
State income tax: $3,148 a year
Living in South Dakota and working in Iowa, you'd pay about $3,148 in state income tax on $100,000 of wages, $3,148 more than if you worked in South Dakota.
Your home state has no income tax, so there is no credit to offset the work state's tax. You pay the work state as a nonresident.
State tax at different salaries
| Wages | To IA | To SD | Total | If you worked in SD |
|---|---|---|---|---|
| $50,000 | $1,248 | $0 | $1,248 | $0 |
| $75,000 | $2,198 | $0 | $2,198 | $0 |
| $100,000 | $3,148 | $0 | $3,148 | $0 |
| $150,000 | $5,048 | $0 | $5,048 | $0 |
| $250,000 | $8,848 | $0 | $8,848 | $0 |
Single filer, all wages earned in Iowa, 2026 state tax rules, standard deductions. Local income taxes not included.
What to do
- File an Iowa nonresident return. There's no South Dakota return for wages because South Dakota has no income tax.
- Keep a record of the days you work in each state, especially if you sometimes work from home.
Local income taxes
- Iowa: School district income surtax on residents only (percentage of state tax); does not affect nonresident commuters.
Frequently asked questions
Do I pay Iowa income tax if I live in South Dakota?
Yes. Iowa taxes wages earned there by nonresidents. On $100,000 that's about $3,148.
Do I have to file taxes in both South Dakota and Iowa?
Usually you file only one state return (a nonresident 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 has no income tax, so you pay only Iowa's nonresident tax: about $3,148 on $100,000.
Related
- Live in Iowa, work in South Dakota
- Moving from South Dakota to Iowa
- Moving from Iowa to South Dakota
- Live in South Dakota, work in Minnesota
- Live in South Dakota, work in Montana
- Live in South Dakota, work in North Dakota
- Live in South Dakota, work in Nebraska
- Live in South Dakota, work in Wyoming
Rules reviewed 2026-09-24 from state revenue departments and the Tax Foundation. Estimates only; confirm with each state's revenue department.