Short answer. SD DLR: $15,000 per employee per calendar year from 2015 on. The 2027 base hadn't been announced when we checked. New employers pay 1.2%.
$15,000
taxable wages per employee for 2026 (the 2027 figure isn't out yet)
Unemployment tax at a glance
- 2027 wage base
- Not announced yet
- 2026 wage base
- SD DLR: $15,000 per employee per calendar year from 2015 on.
- New employer rate
- 1.2%. SD DLR: 1.20% reemployment assistance tax in the first year for non-construction employers with a positive balance, plus a 0.55% investment fee.
- Rate range
- 0%–8.52% (2026). US DOL table, effective January 2026.
- Employee share
- None for unemployment insurance on the pages we read
- Agency
- South Dakota Department of Labor and Regulation, Reemployment Assistance
- Registration
- Register or open an account. SD DLR's Register Your Business page.
New employer rates by type of business
| Who | Rate | What the official page says |
|---|---|---|
| Most new employers | 1.2% | SD DLR: 1.20% reemployment assistance tax in the first year for non-construction employers with a positive balance, plus a 0.55% investment fee. |
| Non-construction, years 2 and 3 | 1% | SD DLR. |
| Construction, year 1 | 6% | SD DLR. |
| Construction, years 2 and 3 | 3% | SD DLR. |
Other amounts on the same official pages
- Investment fee: 0.55%. Listed with the new employer rates (SD DLR).
- Administrative fee: 0.08%. 0.08% for calendar year 2026 and each year after (SD DLR).
What it costs: an example
Three employees at the new employer rate of 1.2% on the $15,000 base, with wages paid evenly through 2026. FUTA is 0.6% of the first $7,000. The employee share, if any, isn't included.
| Employee | Annual wages | SUTA | Base reached | FUTA |
|---|---|---|---|---|
| Part time | $6,000.00 | $72.00 | Not reached | $36.00 |
| Around the base | $15,000.00 | $180.00 | Q4 | $42.00 |
| Above the base | $27,000.00 | $180.00 | Q3 | $42.00 |
Total for the three: $432.00 state plus $120.00 federal. Run your own staff in the SUTA and FUTA calculator set to South Dakota.
Setting up the account for 2027
- Register for an unemployment tax account: SD DLR's Register Your Business page.
- Set the 2026 wage base of $15,000 in payroll, and update it when the 2027 figure is published.
- Use 1.2% until your rate notice arrives, or the industry rate that applies to you; then enter the notice rate for the year.
- Confirm the quarterly report dates with the agency and put them on the calendar.
- Keep each rate notice and wage base change with your payroll records; FUTA's 5.4% credit depends on paying the state tax on time.
Not stated on the official pages we opened: the 2027 wage base, quarterly due dates.
Official sources
- SD DLR: Reemployment Assistance FAQ for businesses
- US Department of Labor: Significant Provisions of State Unemployment Insurance Laws, effective January 2026
- US Department of Labor: FUTA Credit Reductions (page updated September 11, 2026)
- IRS: FUTA credit reduction (page last reviewed September 8, 2026)
General information, not tax or legal advice. Checked November 2026 against the official pages above. States set each employer's own rate every year, and a base or rate can change after we check. Use the rate on your state notice, and confirm with the state agency, your payroll provider or a tax professional before you file. MCC Solutions isn't affiliated with any government agency.
South Dakota unemployment tax questions
Has South Dakota announced its 2027 unemployment wage base?
Not on the official pages we opened in November 2026. The 2026 base is $15,000. We show the 2026 base until the state publishes 2027.
What SUTA rate does a new employer pay in South Dakota?
1.2%. SD DLR: 1.20% reemployment assistance tax in the first year for non-construction employers with a positive balance, plus a 0.55% investment fee. On a full $15,000 base that's $180.00 per employee for the year.
Do construction or other industries pay a different new employer rate in South Dakota?
Yes: non-construction, years 2 and 3 1%; construction, year 1 6%; construction, years 2 and 3 3%. SD DLR.
Are there other South Dakota employer assessments on the same wages?
Investment fee: 0.55%. Listed with the new employer rates (SD DLR). Administrative fee: 0.08%. 0.08% for calendar year 2026 and each year after (SD DLR).
Compare every state: SUTA wage base by state 2027 · Rhode Island SUTA 2027