Typical comp shape
Prompt engineers usually earn ppus, rsu, or options. Common employers include Anthropic, OpenAI, Scale AI, Cohere. New role category where equity offers vary wildly between AI labs. Verify the instrument type, public vs pre-IPO, and liquidity mechanics before accepting.
What South Dakota changes
South Dakota has no wage income tax, which is structurally favorable for prompt engineers with meaningful RSU comp. The savings vs a CA-resident colleague can be $30-60k per year at senior IC levels. That math is why Austin and Seattle are the two top relocation destinations for Bay Area tech workers.
Planning cadence
For a prompt engineer in South Dakota, the three planning windows are: after each RSU vest (withholding check and sell-vs-hold), before any ISO exercise (AMT model at federal only), and in Q4 (estimated tax top-up to clear the safe harbor). A move-out question — if you're considering leaving South Dakota for a high-tax state, time it around vesting.