2026 · South Dakota · H-1B
South Dakota has no income tax on wages, so on a $120,000 H-1B salary a single worker pays about $17,570 of federal income tax and $9,180 of Social Security and Medicare, and keeps $93,250.
2026 figures, last updated .
Estimated 2026 take-home pay
$79,180
Out of $100,000 a year before tax.
Income
H-1B pay
$100,000
Taxes
Federal income tax
$13,170
Social Security & Medicare (FICA)
$7,650
South Dakota income tax
$0
Total tax
$20,820
Take-home
Take-home pay
$79,180
Federal (Form 1040)
Wages $100,000 − pre-tax payroll $0 = $100,000 (W-2 box 1)
= adjusted gross income $100,000 − deduction $16,100 = taxable $83,900
FICA
FICA wages $100,000: Social Security $6,200, Medicare $1,450.
Sources: IRS Rev. Proc. 2025-32 (brackets, standard deductions, child tax credit), Notice 2025-67 and Rev. Proc. 2025-19 (401(k), IRA, HSA limits), SSA 2026 wage base, Publication 519, and each state's revenue department.
FICA from the first H-1B day
Married? File jointly
About South Dakota
No state income tax on wages.
Estimate for 2026 W-2 wages in one state for the whole year. It is not tax advice and not your withholding. Not included: self-employment tax on 1099 pay (15.3%, which H-4 EAD freelancers owe), the dependent care and other credits, state child credits, other income, catch-up contributions, and a spouse's 401(k).
South Dakota has no income tax on wages, so on a $120,000 H-1B salary a single worker pays about $17,570 of federal income tax and $9,180 of Social Security and Medicare, and keeps $93,250. Filing jointly with a spouse who has no income, the same salary keeps $100,780.
| Salary | Federal income tax | Social Security & Medicare | State income tax | After tax, single | After tax, jointly |
|---|---|---|---|---|---|
| $80,000 | $8,770 | $6,120 | $0 | $65,110 | $68,640 |
| $100,000 | $13,170 | $7,650 | $0 | $79,180 | $84,710 |
| $120,000 | $17,570 | $9,180 | $0 | $93,250 | $100,780 |
| $150,000 | $24,734 | $11,475 | $0 | $113,791 | $123,185 |
| $200,000 | $36,734 | $14,339 | $0 | $148,927 | $159,321 |
Figures last updated .
The student exemption ends with F-1 status: 7.65% Social Security and Medicare comes out of H-1B pay from the first day, even in a nonresident year.
A full year on H-1B makes you a resident alien: the same brackets as a citizen, the $16,100 standard deduction, $32,200 filing jointly.
An October 1 start leaves 92 days in H-1B status, so within your five student years you stay a nonresident for that year. OPT months stay FICA-free.
Residency and status changes
F-1 to H-1B: how to file your first tax return after the switch
When your residency starts after a change from F-1 to H-1B in tax year 2026: the day count, the three common cases, the first-year choice, dual-status returns, Form 8843 and Social Security tax.
OPT, CPT and work
Switching from F-1 to H-1B in 2026: your tax checklist
What to check before your H-1B starts, on your first H-1B paycheck, on December 31 and in the 2027 filing season, with a worked October 1 example.
OPT, CPT and work
OPT vs STEM OPT vs H-1B: take-home pay on the same salary (2026)
Estimated 2026 take-home pay on one salary from OPT to STEM OPT to H-1B, and the two things that change it: tax residency and Social Security and Medicare tax.
Residency and status changes
F-1 to H-1B and married: can a joint return lower your 2026 tax?
The IRS choices behind a joint 2026 Form 1040 after an H-1B start, how a start by July 2 or on October 1 changes the route, and an example where the joint return costs $8,072 less.
Residency and status changes
H-1B with a spouse in India or abroad: can you file a joint return?
The three 2026 filing statuses for an H-1B resident whose nonresident spouse lives in India or another country, a worked example on $100,000, and what the joint-return choice costs in later years.
Residency and status changes
What is a dual-status tax return? When F-1 students need one
On a 2026 dual-status return, your status on December 31 decides which form is the return, and the $16,100 standard deduction is lost even for the resident months.
Residency and status changes
Do resident or nonresident aliens pay more tax in 2026?
A resident alien gets the $16,100 standard deduction but pays 7.65% Social Security and Medicare tax. We ran the same 2026 wages both ways in four states.
Nothing: South Dakota has no income tax on wages. You pay federal income tax and Social Security and Medicare only.
Federal income tax and 7.65% Social Security and Medicare.
Not for wages: South Dakota has no wage income tax, so there is no state return for your pay. If you lived or worked in another state during the year, that state may need one.
Yes, and it usually lowers the tax: the joint standard deduction is $32,200 and every bracket is twice as wide. On $120,000 in Texas with a spouse who has no income, federal income tax falls from $17,570 to $10,040. A spouse who is not a resident by days can still be on the return if you both choose to treat them as one (IRC 6013(g)); they need an SSN or an ITIN.
With a spouse abroad: Filing jointly with a nonresident spouse
If the year is within your five student years and your H-1B starts on October 1, you have 92 days in H-1B status and are a nonresident for the whole year: Form 1040-NR, no standard deduction, and Social Security and Medicare only on the H-1B pay. A start on or before July 2 usually makes it a dual-status year. In your sixth calendar year you are a resident all year. Pick your H-1B start date above to work it out.
Step by step: Your first tax return after F-1 to H-1B
Take-home pay on an H-1B salary in every state and DC for 2026, single or filing jointly with an H-4 spouse.
Which return to file after the switch from F-1, how the 183 days are counted, and when Social Security starts. F1TaxReturn prepares student returns; it does not prepare Form 1040 or dual-status returns.
Read the guide