South Dakota has no state income tax on gig earnings, so a single driver who earns $40,000 and tracks mileage owes only federal tax: about $3,207 for 2026, or $8.02 of every $100 (about $62 a week). Most of that is 15.3% self-employment tax.
Estimated 2026 tax from your gig work: $3,865, about $74 a week.
Show the math
| Gig earningsSchedule C, line 1 | $42,000 |
| Mileage deductionSchedule C, line 9 (72.5¢ and 76¢ a mile) | −$13,745 |
| Other business expensesSchedule C | −$900 |
| Net profitSchedule C, line 31 | $27,355 |
| Self-employment taxSchedule SE (15.3% of 92.35% of profit) | $3,865 |
| Half of self-employment taxSchedule 1 adjustment | −$1,933 |
| Adjusted gross incomeForm 1040 | $25,422 |
| Standard deductionForm 1040 | −$16,100 |
| Tips deductionSchedule 1-A (up to $25,000) | −$11,500 |
| Business income deductionForm 8995 (QBI) | −$0 |
| Taxable incomeForm 1040 | $0 |
| Federal income tax2026 tax brackets | $0 |
| South Dakota income taxNo state income tax | $0 |
| Total tax | $3,865 |
An estimate for planning, not tax advice. See how we calculate and our verified examples.
How much to set aside for South Dakota 1099 taxes
| Yearly gig earnings | Total tax | Of which South Dakota tax | Set aside per $100 |
|---|---|---|---|
| $25,000 | $2,005 | $0 | $8.02 |
| $40,000 | $3,207 | $0 | $8.02 |
| $60,000 | $4,826 | $0 | $8.04 |
Assumptions: Single filer, no other income, tips are 25% of earnings, $1.80 earned per business mile, other expenses 2% of earnings, before tax credits, 2026 rules.
South Dakota self-employment and income tax rules
South Dakota does not tax wages or business profit, so the only income taxes on your 1099 earnings are federal: 15.3% self-employment tax and federal income tax after deductions.
Federal self-employment tax still applies
Wherever you live, you pay federal income tax and 15.3% self-employment tax on your 1099 profit. The calculator includes both, plus the federal tips deduction, both 2026 IRS mileage rates and federal credits. See how we calculate.
Quarterly payment dates
| Payment | Covers income earned | Due date |
|---|---|---|
| Q1 | January 1 to March 31, 2026 | April 15, 2026 |
| Q2 | April 1 to May 31, 2026 | June 15, 2026 |
| Q3 | June 1 to August 31, 2026 | September 15, 2026 |
| Q4 | September 1 to December 31, 2026 | January 15, 2027 |
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South Dakota 1099 tax calculator questions
Does South Dakota have a state income tax?
No. South Dakota has no state income tax on wages or business profit.
How are DoorDash taxes calculated in South Dakota?
Dashers in South Dakota pay 15.3% federal self-employment tax on 92.35% of their profit, federal income tax after deductions and no state income tax. On $40,000 of earnings the total is about $3,207 in our example.
Do Uber drivers pay South Dakota income tax?
No. South Dakota has no state income tax, so Uber drivers there pay only federal income tax and self-employment tax.
How much should I set aside for 1099 taxes in South Dakota?
About $8.02 per $100 on $25,000 of gig earnings, $8.02 on $40,000 and $8.04 on $60,000, for a single driver who tracks mileage.
Does South Dakota tax tips?
No. South Dakota has no state income tax.
Are there local income taxes in South Dakota?
Not for most drivers.