Short answer. South Dakota DLR: effective January 1, 2027, the minimum wage for non-tipped employees will be $12.30 per hour.
$12.30
South Dakota minimum wage from January 1, 2027 (+$0.45, 3.8%)
South Dakota minimum wage at a glance
- 2027 rate
- $12.30 from January 1, 2027
- 2026 rate
- $11.85 from January 1, 2026; tipped $5.925 (South Dakota DLR).
- Change
- +$0.45 an hour (3.8%)
- Tipped employees
- Cash wage $5.93 → $6.15; maximum tip credit $6.15
- Local rates
- Not confirmed on a state page
South Dakota tipped employees in 2027
DLR's 2027 poster: tipped cash wage no less than $6.15, which is 50% of the state minimum (SDCL 60-11-3.1). A server on $6.15 who works 30 hours needs at least $184.50 in tips that week to reach $12.30 an hour; the employer covers any shortfall.
What the South Dakota change costs: an example
Each row compares a pay rate with the South Dakota 2027 floor. Weekly cost is the raise times hours, with overtime at time and a half; the last column runs from January 1, 2027 to December 31, 2027 (52.14 weeks). Employer taxes aren't included.
| Employee | Rate now | Hours | Raise | Weekly | Rest of 2027 |
|---|---|---|---|---|---|
| At the 2026 minimum | $11.85 | 40 | +$0.45 | $18.00 | $938.52 |
| Between the two rates | $12.08 | 30 | +$0.22 | $6.60 | $344.12 |
| Full time plus 5 hours overtime | $11.85 | 45 | +$0.45 | $21.38 | $1,114.75 |
| Already above 2027 | $12.80 | 40 | None | $0.00 | $0.00 |
| Tipped, at the 2026 cash wage | $5.93 | 30 | +$0.23 | $6.90 | $359.77 |
Run your own staff list in the payroll change calculator set to South Dakota.
Updating South Dakota payroll
- Before January 1, 2027, list everyone paid under $12.30 an hour (or under $6.15 cash for tipped staff), including part-timers and seasonal staff.
- Change the rates in payroll with an effective date of January 1, 2027, and split any pay period that crosses it.
- For tipped staff, update the cash wage and keep checking each week that cash wage plus tips reaches $12.30.
- Replace the South Dakota minimum wage poster with the 2027 version from the state labor department.
Official South Dakota sources
- South Dakota DLR: Minimum Wage
- South Dakota DLR: 2027 minimum wage poster
- U.S. Department of Labor: State Minimum Wage Laws (updated November 5, 2026)
- U.S. Department of Labor: Minimum Wages for Tipped Employees (revised July 1, 2026)
General information, not legal advice, checked November 2026 against the official South Dakota pages above. A state can change a rate after we check, cities and counties can set higher rates, and exemptions depend on the job and the employer. Before you change payroll, confirm the rate on the state labor department's site or with your payroll provider or employment attorney. MCC Solutions isn't affiliated with any government agency.
South Dakota 2027 minimum wage questions
What is the South Dakota minimum wage in 2027?
$12.30 an hour from January 1, 2027, up from $11.85. South Dakota DLR: effective January 1, 2027, the minimum wage for non-tipped employees will be $12.30 per hour.
What is the tipped minimum wage in South Dakota for 2027?
$6.15 an hour in cash wages ($5.93 before the change), with tips making up the rest of $12.30. DLR's 2027 poster: tipped cash wage no less than $6.15, which is 50% of the state minimum (SDCL 60-11-3.1).
How much more does a full-time South Dakota minimum wage worker cost each week in 2027?
$0.45 an hour more, so $18.00 for a 40-hour week before employer taxes, or about $938.52 over the rest of 2027. Overtime hours add the raise at time and a half.
Compare every state: minimum wage by state 2027 · Rhode Island 2027 · Washington 2027