Wage garnishment and exemptions in South Dakota

In South Dakota, a creditor can take no more than 20% of your pay. Plus what a creditor can't touch in your bank account and what property you keep.

Short answer

South Dakota sets a lower limit than federal law: no more than 20% of your pay. Stricter than federal: no more than the lesser of 20% of disposable earnings, or the amount above 40 times the federal or South Dakota minimum wage (whichever is higher) per week. (SDCL 21-18-51) We could not confirm a general dollar amount protected in a bank account in South Dakota; directly deposited federal benefits are still protected (31 CFR 212.6).

Wage limit
Up to 20%
Federal benefits in a bank account
Up to 2 months protected
Law
SDCL 21-18-51

Your paycheck and garnishment in South Dakota

Wage limit
Stricter than federal: no more than the lesser of 20% of disposable earnings, or the amount above 40 times the federal or South Dakota minimum wage (whichever is higher) per week. (SDCL 21-18-51)
Head of household
The amount that can be taken under the 40-times-minimum-wage test is cut by $25 a week for each dependent family member living with you. (SDCL 21-18-51(2))
Law
SDCL 21-18-51

Only 20 of the 48 states we cover cap garnishment at 20% or less; South Dakota is one (federal cap: 25%, 15 U.S.C. 1673(a)).

In nearby states

More South Dakota rules

  • Garnishment is capped at 20% of disposable pay, with an extra $25 a week protected for each dependent living with you. (SDCL 21-18-51)
  • SDCL 43-45-3 (homestead exemption, including the exempt proceeds of a sale) was amended in 2025 (SL 2025, ch 185, § 1); current text protects up to $100,000 of sale proceeds for one year.

What creditors can't take in South Dakota

  • Your homestead is fully exempt, within area limits (1 acre in town, 160 acres outside); if it is sold, up to $100,000 of the proceeds is exempt for one year (SDCL 43-31-1, 43-31-4, 43-45-3).
  • A head of family may also choose other personal property worth up to $7,000 to keep ($5,000 for others) (SDCL 43-45-4).

Bank accounts and garnishment in South Dakota

Two months of federal benefits paid by direct deposit are off-limits to a garnishment, and the bank applies this on its own (31 CFR 212.5, 212.6). How garnishment follows a lawsuit.

The lawsuit comes first in South Dakota

If you do not serve an answer within 30 days, the collector can ask the court for a default judgment, which can lead to garnishment.

The time to answer in South Dakota: 30 days after the complaint is served on you (circuit court)

What to do if you are sued in South Dakota

Claiming your exemptions in South Dakota

  1. Watch for deadlines

    Note any deadline to claim exemptions on papers from the court, your employer or your bank; it can be short.

  2. Apply South Dakota's wage rule

    South Dakota's wage rule: Stricter than federal: no more than the lesser of 20% of disposable earnings, or the amount above 40 times the federal or South Dakota minimum wage (whichever is higher) per week. The amount that can be taken under the 40-times-minimum-wage test is cut by $25 a week for each dependent family member living with you.

  3. Check your bank deposits

    Federal benefits paid by direct deposit are protected too (31 CFR 212.6).

  4. Claim your exemptions in court

    File the court's exemption claim form before the deadline; the clerk has it. Start with South Dakota court self-help (official).

Questions about garnishment in South Dakota

What is the wage garnishment limit in South Dakota?

Stricter than federal: no more than the lesser of 20% of disposable earnings, or the amount above 40 times the federal or South Dakota minimum wage (whichever is higher) per week. (SDCL 21-18-51)

Do parents or heads of household get extra protection in South Dakota?

The amount that can be taken under the 40-times-minimum-wage test is cut by $25 a week for each dependent family member living with you. (SDCL 21-18-51(2))

What property is protected from creditors in South Dakota?

Your homestead is fully exempt, within area limits (1 acre in town, 160 acres outside); if it is sold, up to $100,000 of the proceeds is exempt for one year (SDCL 43-31-1, 43-31-4, 43-45-3). A head of family may also choose other personal property worth up to $7,000 to keep ($5,000 for others) (SDCL 43-45-4).

Related South Dakota pages

Wage garnishment in nearby states

Sources

Last checked: Oct 24, 2026.

Federal sources