South Dakota taxes — property, income, sales, retirement

Home·Tax overview·South Dakota

Property tax, income tax, sales tax, and retirement-income treatment in South Dakota. Quick read for movers, retirees, and remote workers.

No state income tax. Lower base sales (4.5%, local pushes higher). Property tax above average. SS + pensions untaxed.
Effective property tax
1.14%
of home value/yr
Income tax (top rate)
0%
Sales tax (state)
4.50%
local adds more
SS taxed by state?
No

Property tax

South Dakota’s effective property tax rate is approximately 1.14% of assessed home value per year. On a $350,000 home that’s about $3,989/yr. Rates vary by county and municipality — this is a state-wide average.

Income tax

Top marginal rate: 0%. No state income tax. For wage earners, the effective rate depends on filing status, deductions, and credits.

Sales tax

State base rate: 4.50%. Local municipal and county additions can raise the combined rate by 1-4 percentage points.

Retirement income

Social Security: Not taxed by state. Pensions & 401(k) withdrawals: Not taxed (no state income tax).

Top cities in South Dakota

Sioux Falls · pop 209,289 · momentum 72

Rapid City · pop 79,894 · momentum 72

Aberdeen · pop 27,919 · momentum 70

Brookings · pop 24,555 · momentum 73

Watertown · pop 23,492 · momentum 71

Yankton · pop 15,670 · momentum 66

Compare to other states: All 50 state tax overviews · All South Dakota cities · Best South Dakota cities for retirees

Sources: Tax Foundation effective property tax rankings, state DOR publications, AARP retirement tax guide. 2024/2025 representative figures — verify with a CPA for your specific situation.