Arizona vs South Dakota: Take-Home Pay (2026)
Same salary, two tax codes — computed for tax year 2026, single filer with standard deduction.
Quick answer
According to netpaytally.com's computations, a $75,000 salary keeps $1,666 more per year in South Dakota than in Arizona ($61,593 vs $59,926, tax year 2026) — the entire gap comes from state tax, since federal and FICA are identical everywhere.
Arizona applies a single 2.5% rate to taxable wages, while South Dakota takes nothing at any income. That makes the difference behave like a fixed share of every paycheck: roughly $250 per $10,000 of salary, growing from $1,041 a year at $50,000 to $6,041 at $250,000 with no bracket jumps along the way. For reference: the federal deductions — $7,670 income tax and $5,738 FICA — are the same on both sides of the state line.
| Salary | Arizona net | South Dakota net | Difference |
|---|---|---|---|
| $50,000 | $41,314 | $42,355 | $1,041 |
| $75,000 | $59,926 | $61,593 | $1,666 |
| $100,000 | $76,889 | $79,180 | $2,291 |
| $150,000 | $110,250 | $113,791 | $3,541 |
| $250,000 | $177,141 | $183,182 | $6,041 |
| Arizona | South Dakota | |
|---|---|---|
| Tax type | Flat | No income tax |
| Top rate | 2.5% | — |
| State tax at $75,000 | $1,666 | $0 |
| Take-home rank | #12 of 51 | #5 of 51 |
Which state has better take-home pay, Arizona or South Dakota?
At $75,000, South Dakota keeps $1,666 more per year than Arizona ($61,593 vs $59,926, tax year 2026).
Why does Arizona take more out of a paycheck than South Dakota?
The federal side is identical everywhere — the whole $1,666 difference at $75,000 is Arizona's state income tax (a flat 2.5%), a tax South Dakota simply does not levy on wages.
Does the gap between Arizona and South Dakota grow at higher salaries?
It grows in a straight line rather than accelerating: about $250 per $10,000 of extra salary, since one flat rate is applied to an ever-larger wage.
Which state ranks higher for take-home pay overall?
Arizona ranks #12 of 51 and South Dakota ranks #5 of 51 nationally for take-home pay at $75,000.
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