Tipping in South Dakota

Last reviewed October 2026

South Dakota Tipping Laws in 2026: Quick Facts

Effective January 1, 2026

South Dakota Minimum Wage

$11.85 per hour¹

South Dakota Tipped Minimum Wage

$5.93 per hour (50% of the minimum wage)¹ ²

Maximum Tip Credit

$5.92 per hour³

Who Qualifies as a Tipped Employee?

An employee who customarily and regularly receives more than $35 per month in tips²

Are Tip Pools Allowed?

Yes, under federal rules⁴

Are Mandatory Service Charges Tips?

No⁴

Can Employers Keep Employee Tips?

No⁴

Can Credit Card Fees Be Taken From Tips?

South Dakota has no specific rule. Under federal law, employers can deduct only the actual card-processing percentage.⁴

South Dakota has its own rules for wages and tips, and its Black Hills tours, Deadwood casinos, and pheasant hunts create tipping situations many visitors may not be familiar with.

Work in South Dakota? Learn about South Dakota's tipping laws, minimum wage, tip pools, and your rights when it comes to tips.

Visiting South Dakota? Explore popular South Dakota experiences where tipping is common and see what customers and workers report about tipping.

What Is South Dakota's Minimum Wage for Tipped Employees?

A tip credit lets an employer count part of an employee's tips toward the minimum wage, so it can pay a lower hourly wage as long as tips make up the difference.

South Dakota's minimum wage is $11.85 per hour in 2026. Employers must pay tipped employees a cash wage of at least half that, or about $5.93 per hour.¹ ² Wages plus tips must reach at least the full minimum wage. If they don't, the employer must make up the difference each pay period.²

The minimum wage adjusts for inflation each year.⁵

Who Owns Tips in South Dakota?

Tips belong to the employee. Under federal law, employers, managers, and supervisors cannot keep any part of employees' tips, whether or not the employer takes a tip credit.⁴

Are Tip Pools Allowed in South Dakota?

A tip pool is an arrangement where employees' tips are combined and shared among a group, such as servers, bussers, and bartenders.

Yes. South Dakota doesn't set separate tip pool rules, so federal rules apply:⁴

With a tip credit: When an employer pays the tipped minimum wage, the pool can include only employees who customarily and regularly receive tips, such as servers, bartenders, and bussers.
Without a tip credit: When every employee is paid the full minimum wage, the pool can also include back-of-house staff, such as cooks and dishwashers.
Managers and owners are out. Managers, supervisors, and owners cannot take tips from the pool.

Are Service Charges Considered Tips in South Dakota?

No. A mandatory service charge, such as an automatic 18% added to a large party's bill, is not a tip under federal law.⁴

The difference comes down to customer choice. A tip is voluntary, and the customer decides how much to leave. A mandatory service charge is part of the required price, and the business decides how to distribute it.

Can Employers Take Credit Card Fees Out of Tips?

South Dakota's rules don't address this, so federal law applies. An employer that pays a percentage-based card fee can deduct that same percentage from a card tip, but nothing more.⁴

Tipping While Visiting South Dakota

South Dakota's Black Hills, Badlands, and prairie hunting grounds create tipping situations many visitors haven't run into before. Summer road trips to Mount Rushmore, the August motorcycle rally in Sturgis, and fall pheasant season bring visitors from across the country.

Whether you're touring the Black Hills or hunting the prairie, here are popular experiences where travelers often have questions about tipping.

Tours and Outdoor Adventures

Wildlife and Park Tours

Jeep tours through Custer State Park look for bison, and guided tours visit Mount Rushmore, Crazy Horse Memorial, and the Badlands. Guests often wonder whether the driver or guide expects a tip on a ticketed tour.

Do You Tip on a Jeep Safari?
Do You Tip a Tour Guide?

Pheasant Hunting

South Dakota is known as the country's top pheasant hunting destination, and many visitors hunt with a guide or stay at a lodge. Hunters often wonder how to tip the guide, dog handler, and lodge staff.

Do You Tip a Hunting Guide?

Fishing

The Missouri River reservoirs are known for walleye fishing, and many visitors hire a guide.

Do You Tip a Fishing Guide?

Casinos and Entertainment

Deadwood Casinos

Historic Deadwood is lined with casinos offering table games and slots. First-time visitors often aren't sure whether to tip dealers and cocktail servers.

Do You Tip a Casino Dealer?
Do You Tip a Cocktail Server?

Sturgis Motorcycle Rally

The rally in Sturgis each August brings huge crowds to the Black Hills, with packed bars, campgrounds, and concerts.

Do You Tip at a Motorcycle Rally?
Bartender Tipping

Chuckwagon Dinner Shows

Western-style dinner shows in the Black Hills serve a chuckwagon supper with live music. Guests often aren't sure whether to tip servers when the meal is included in the ticket price.

Do You Tip at a Dinner Show?

Lodging

Lodges, Cabins, and Hotels

From state park lodges to hunting lodges and Black Hills cabins, you may meet several staff members during your stay.

Hotel Housekeeping
Bellhops
Do You Tip Vacation Rental Housekeeping?

Food and Drink

Restaurants, Bars, and Roadside Stops

Restaurants and bars are the most familiar places to tip. Roadside cafes, famous road-trip stops, and small-town diners add situations where you may see a tip prompt at the counter.

Restaurant Tipping
Do You Tip for Counter Service?

What Customers and Workers Report

Tipping customs and expectations don't always match people's real-life behavior.

TippingGuide.com collects feedback from both customers and workers to show the two sides of tipping.

Our Customer and Worker Averages compare what customers report tipping for average service with what workers report expecting to receive.

Explore the categories above to see what customers and workers report for different services and tipping situations.

Information about South Dakota wage and tipping laws is provided for informational purposes only and is not legal advice. Laws, regulations, and minimum wages can change. This information was last reviewed in October 2026.

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