Live in South Dakota, Work in Kansas: Which State Taxes Your Paycheck?
Answer
One return, filed in Kansas. Your employer withholds Kansas tax on the wages you earn there and you settle up on a Kansas nonresident return. South Dakota does not tax wages, so this pair produces a single state filing rather than two.
Last verified
Living in a state with no income tax removes the resident return, but it does not shelter income you earn somewhere else. Kansas taxes what is earned inside Kansas, whoever earns it, and a nonresident return is how that gets settled.
What you file
- 1Nonresident return · KansasForm K-40 with Schedule S Part B
File a Kansas nonresident return for the wages you earned in Kansas. South Dakota has no wage income tax, so there is no second return and no credit to claim.
The two states, side by side
| South Dakota | Kansas | |
|---|---|---|
| Taxes wages | No | Yes — graduated |
| Reciprocity partners | None | None |
| Convenience rule | No | No |
| Nonresident return | Not applicable | Form K-40 with Schedule S Part B |
| Credit for other-state tax | No income tax | Form K-40 (credit for taxes paid to other states) |
| Nonresident safe harbour | Not applicable | None published |
| Local income tax | No | No |
| Revenue department | South Dakota Department of Revenue | Kansas Department of Revenue |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in Kansas and working in South Dakota gives:Home state only.
Same two states, different situation
The withholding answer turns on how you are paid and where the work happens, not only on which two states are involved.
- Remote worker: South Dakota → KansasNo state income tax on your wages
- 1099 contractor: South Dakota → KansasClient state only, if you work there
- Moved mid-year: South Dakota → KansasOne part-year return — the state you moved to
Other South Dakota pairs
Questions people actually ask
I live in South Dakota and work in Kansas. Which state takes the tax out of my paycheck?
One return, filed in Kansas. Your employer withholds Kansas tax on the wages you earn there and you settle up on a Kansas nonresident return. South Dakota does not tax wages, so this pair produces a single state filing rather than two.
Which state should my employer be withholding for?
Kansas. The wages are sourced to Kansas, so Kansas withholding is correct and there is no South Dakota withholding to set up, because South Dakota levies no income tax on wages.
How current is this?
The South Dakota and Kansas rules on this page were last checked against South Dakota Department of Revenue and Kansas Department of Revenue on 2026-08-07. We re-check the full grid every December after state legislative sessions close, and re-check the convenience-of-the-employer states quarterly because that is where the rules move fastest.
Sources
Every fact above comes from the revenue department that publishes the rule. We do not cite secondary summaries, and we do not restate a figure we could not find at source.
- South Dakota Department of Revenue — individual income taxaccessed 2026-08-07
- Kansas Department of Revenue — individual income taxaccessed 2026-08-07