How Upwork Taxes Work in South Dakota
South Dakota has no state income tax. Upwork workers in South Dakota only pay federal income tax and the 15.3% self-employment tax.
SE Tax
15.3%
Federal (all states)
Federal Tax
10-37%
Based on income
SD State Tax
None
No state income tax
Top Tax Deductions for Upwork Workers in South Dakota
FAQ — Upwork Taxes in South Dakota 2026
Q: Do Upwork workers pay taxes in South Dakota?
Yes. In South Dakota, Upwork taskers pay 15.3% self-employment tax plus federal income tax. There is no South Dakota state income tax.
Q: Do I need quarterly payments in South Dakota?
In South Dakota, you only need federal quarterly estimated payments (Form 1040-ES) if you expect to owe $1,000 or more. No state payments required.
Q: Does Upwork take out taxes in South Dakota?
No. Upwork does not withhold taxes. You are responsible for paying all SE tax, federal income tax yourself through quarterly estimated payments.
Disclaimer: State tax rates are for estimation purposes only. Not affiliated with Upwork or any government agency. Consult a licensed CPA for advice.