Workers Comp Rates in South Dakota (SD)
The average workers' compensation rate in South Dakota is $0.95 per $100 of payroll , effective as of 2025-01-01. This is $0.24 (20.2%) below the national average of $1.19 per $100. South Dakota has a competitive insurance market where employers can purchase workers' comp from private insurers. South Dakota requires workers' compensation for most employers. The state has competitive rates below the national average with a business-friendly regulatory environment.
Workers Comp Requirements in South Dakota
Workers Comp Rates by City in South Dakota
The table below shows average workers' compensation rates for 3 cities in South Dakota, sorted by rate from highest to lowest. Rates range from $0.90/$100 in Pierre to $0.98/$100 in Rapid City. Actual rates depend on your industry class code and claims history.
| City | Rate/$100 | Est. Cost ($250K) | vs. State Avg | vs. National Avg | Notes |
|---|---|---|---|---|---|
| Rapid City | $0.98 | $2,450 | +$0.03 | -$0.21 | Tourism/mining |
| Sioux Falls | $0.92 | $2,300 | -$0.03 | -$0.27 | Largest city |
| Pierre | $0.90 | $2,250 | -$0.05 | -$0.29 | State capital |
How South Dakota Compares to Other States
Below is a comparison of South Dakota with five states that have similar workers' compensation rates. This comparison helps illustrate where South Dakota stands nationally in terms of workers' comp costs and requirements.
| State | Rate/$100 | Type | Min Employees | Waiting Period | Est. Cost ($250K) |
|---|---|---|---|---|---|
| South Dakota (SD) | $0.95 | Competitive | 1+ | 7 days | $2,375 |
| Idaho (ID) | $0.95 | Competitive | 1+ | 5 days | $2,375 |
| Colorado (CO) | $0.92 | Competitive | 1+ | 3 days | $2,300 |
| Kentucky (KY) | $0.98 | Competitive | 1+ | 7 days | $2,450 |
| Tennessee (TN) | $0.98 | Competitive | 5+ | 7 days | $2,450 |
| Texas (TX) | $0.90 | Competitive | 1+ | 7 days | $2,250 |
Workers Comp Cost Examples for South Dakota
The following table shows estimated annual workers' compensation costs for various payroll sizes in South Dakota using the state average rate of $0.95 per $100 of payroll. Actual costs depend on your industry class code and experience modifier.
| Annual Payroll | Est. Annual Premium | Est. Monthly Cost |
|---|---|---|
| $50,000 | $475 | $40 |
| $100,000 | $950 | $79 |
| $250,000 | $2,375 | $198 |
| $500,000 | $4,750 | $396 |
| $1,000,000 | $9,500 | $792 |
| $2,500,000 | $23,750 | $1,979 |
Frequently Asked Questions About Workers Comp in South Dakota
How much does workers comp cost in South Dakota?
The average workers' compensation rate in South Dakota is $0.95 per $100 of payroll. For an employer with $250,000 in annual payroll, that works out to approximately $2,375 per year. However, actual rates vary significantly by industry. Office workers may pay as little as $0.20/$100 while high-risk industries like construction or logging can exceed $10/$100.
Is workers comp required in South Dakota?
Yes. South Dakota requires workers' compensation for employers with 1 or more employees. The following are exempt: Agricultural workers, domestic workers, certain family employees, casual workers. Penalties for noncompliance include: Class 1 misdemeanor, $500 fine per day, personal liability.
Where can I buy workers comp in South Dakota?
South Dakota has a competitive workers' compensation market. You can purchase coverage from any licensed private insurance company, through an insurance agent or broker, or in some cases through a state-sponsored program. Shopping multiple carriers is recommended to find the best rate for your industry and claims history.
What is the waiting period for workers comp in South Dakota?
The waiting period in South Dakota is 7 days. This means an injured worker must wait 7 days before receiving wage replacement benefits. Medical benefits typically begin immediately. If the disability extends beyond a certain number of days (usually 14-21 depending on the state), the waiting period benefits are paid retroactively. The maximum weekly benefit in South Dakota is $812.
Estimate Your Workers Comp Cost
Use our workers comp cost calculator to estimate your premium based on your specific payroll in South Dakota, or browse all 50 states to compare workers' comp rates across the country. Remember that actual rates depend on your industry classification, claims history, and experience modification rate.