Severance Pay in South Dakota: Calculator & 2026 Guide
Calculate your estimated severance package in South Dakota. South Dakota has no state income tax — you keep more of your severance.
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Estimate your severance package based on your salary, years of service, and industry
South Dakota Severance Pay Laws
South Dakota has no state income tax - your severance will only have federal withholding.
How Severance Is Taxed in South Dakota
| Tax Type | Rate | On $50,000 Severance |
|---|---|---|
| Federal (Supplemental) | 22.0% | $11,000 |
| South Dakota State Tax | 0.0% | $0 |
| Total Withholding | 22.0% | $11,000 |
| You Keep | 78.0% | $39,000 |
South Dakota Severance by Industry
Example: 5 years of service, $75,000 salary, individual contributor in South Dakota
| Industry | Weeks/Year | Gross Estimate | After Tax |
|---|---|---|---|
| Technology | 2-4 | $21,635 | $16,875 |
| Finance & Banking | 2-4 | $21,635 | $16,875 |
| Healthcare | 1-3 | $14,423 | $11,250 |
| Retail | 0.5-2 | $7,212 | $5,625 |
| Manufacturing | 1-3 | $14,423 | $11,250 |
| Consulting & Professional Services | 2-4 | $21,635 | $16,875 |
| Government | 1-2 | $7,212 | $5,625 |
| Nonprofit | 1-2 | $10,817 | $8,438 |
| Other Industry | 1-3 | $14,423 | $11,250 |
How to Negotiate Severance in South Dakota
In South Dakota, the standard federal WARN Act applies — 60 days notice for layoffs of 50+ employees at companies with 100+ workers.
- ✓ Ask for more weeks: Counter with 50% more than the initial offer
- ✓ Negotiate COBRA: Employer-paid health coverage for 6-12 months
- ✓ Get a written reference: Protect your future career prospects
- ✓ Review non-compete clauses: Negotiate restrictions before signing
- ✓ Consult a lawyer: Employment attorneys often negotiate 2-5x the original offer
Think Your Severance Is Too Low?
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South Dakota Severance Pay FAQ
Is severance pay required in South Dakota?▼
No, South Dakota does not have a state law requiring employers to provide severance pay. However, the federal WARN Act may require 60 days notice or pay in lieu of notice for large layoffs.
How is severance taxed in South Dakota?▼
Severance in South Dakota is taxed at 22.0% combined — 22% federal supplemental rate. South Dakota has no state income tax, so you keep more. On a $50,000 severance, you'd take home approximately $39,000.
What is the WARN Act in South Dakota?▼
The federal WARN Act applies in South Dakota, requiring employers with 100+ employees to give 60 days advance notice for mass layoffs of 50+ workers. Failure to provide proper notice can result in back pay for the notice period.
Can I collect unemployment and severance in South Dakota?▼
This depends on how your severance is structured. Some South Dakota workers can receive both simultaneously, while others may see a delay in unemployment benefits. If severance is paid as a lump sum, it's less likely to delay unemployment than if paid as continued salary. Contact South Dakota's unemployment office for specific guidance.
Severance Pay in Nearby States
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