1099 Quarterly Taxes in South Dakota (2025-2026)
If you're self-employed in South Dakota — freelancer, contractor, gig worker, or single-member LLC — your tax burden is entirely federal. South Dakota levies no personal income tax, which makes it one of the most tax-friendly states for self-employed Americans. You'll still owe federal income tax plus the 15.3% self-employment tax, but you skip the state filing entirely.
South Dakota state income tax (2025)
0%. South Dakota is one of nine states without a personal income tax (the others: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming). Self-employed South Dakota residents file a federal return (Form 1040 + Schedule C + Schedule SE) but no state income tax return is required for personal 1099 income.
Quarterly payments — federal only for South Dakota residents
Federal estimated tax due dates apply nationwide:
- Q1 — April 15, 2026
- Q2 — June 16, 2026
- Q3 — September 15, 2026
- Q4 — January 15, 2027
Pay through IRS Direct Pay (irs.gov/payments) for free bank transfers, or mail Form 1040-ES with a check.
South Dakota-specific quirk freelancers miss
South Dakota has no state personal income tax. There is no tax on interest, dividends, or capital gains either. The state's revenue comes primarily from sales tax (4.2% state) and property taxes.
Common federal deductions for South Dakota freelancers
Without a state return, your only itemization layer is federal. The deductions that matter most:
- Standard business expenses — software, contractors, supplies, professional services.
- Home office — simplified ($5/sq ft up to 300 sq ft) or actual percentage of rent/utilities.
- Mileage — $0.70/mile in 2026 (business use).
- Half of SE tax — federal above-the-line deduction.
- QBI deduction — 20% of qualified business income, federal.
- SEP-IRA / Solo 401(k) — major shelter for high-income freelancers.
- Self-employed health insurance premiums — fully deductible if no W-2 spouse coverage.