South Dakota Minimum Wage Is Going Up in 2026

Starting January 1, 2026, some workers in South Dakota will get a few extra cents on their paychecks, 35 cents to be exact.

South Dakota will start the new year with an increase in the minimum wage in the state. According to the South Dakota Department of Labor & Regulation, the state’s minimum wage for non-tipped employees will increase from $11.50 to $11.85 per hour effective Jan. 1, 2026.

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How Much the Minimum Wage Is Increasing

South Dakota law required that the minimum wage in the state increase in relation to the cost of living.

If you are a tipped employee, the new minimum wage in South Dakota will be $5.925/hour starting January 1, 2026.

Who Is Exempt From South Dakota’s Minimum Wage Law

The state's minimum wage applies to all employers, except for certain seasonal, amusement, or recreation businesses, babysitters, and outside salespersons. Training wages are exempt, as are apprentices and individuals with a developmental disability.

How South Dakota’s Minimum Wage Compares Nationally

South Dakota's minimum wage ranks the state in the middle of all the US states' minimum wages. The federal minimum wage is $7.25, and 20 states set that as their minimum wage in 2025, including South Dakota's neighbours in Iowa, North Dakota, and Wyoming. In Minnesota, the minimum wage is $11.13. Nebraska's minimum wage will increase to $15.00 on January 1, 2026.

The highest minimum wages in the United States can be found in Connecticut ($16.35),
California ($16.50), Washington ($16.66), and Washington, D.C. ($17.95).