South Dakota Property Tax

South Dakota Property Tax Overview

Key figures (ACS 5‑year estimates, 2023)

*The effective property tax rate is calculated as the median annual tax amount divided by the median home value.

How the tax is calculated

The effective rate of 1.09 % means that, on average, a homeowner in South Dakota pays 1.09 % of the property’s assessed value each year in property taxes.

Example calculations (rounded):

These examples use the statewide effective rate of 1.09 %. Actual bills may differ because property tax rates can vary by county, municipality, school district, and special assessment district.

Comparison to the National Average

• National average effective property tax rate (2023 ACS): 0.97 %
• South Dakota’s rate: 1.09 % – 13.03 % higher than the national average.

South Dakota’s ranking (34th) places it in the middle of the national distribution; several states have both higher and lower effective rates.

Implications for Specific Groups

Retirees

• South Dakota does not levy a state income tax, which can lower overall tax burden for retirees.
• The property tax rate of 1.09 % is modestly above the national average, so retirees who own a home will pay property taxes comparable to many other states.
• Property tax relief programs (e.g., homestead exemptions) exist in some counties, but eligibility and benefit amounts differ locally.

Landlords

• Landlords are subject to the same effective rate on the assessed value of each rental property.
• Because the rate is uniform across the state (subject to local variations), landlords can estimate expenses using the 1.09 % figure and adjust for county‑specific millage rates.
• No state-level property tax credits are specifically targeted to landlords; any incentives are administered at the county or municipal level.

Frequently Asked Questions

1. How is the effective property tax rate determined?
The effective rate is the median annual property tax amount divided by the median home value, expressed as a percentage. It reflects the average burden across all property owners rather than the rate posted by a specific jurisdiction.

2. Do property tax rates differ between counties?
Yes. Each county (and many municipalities and school districts within the county) sets its own millage rates. The statewide 1.09 % figure is an average; actual rates can be higher or lower depending on the local jurisdiction.

3. Are there exemptions or rebates that lower property taxes?
South Dakota allows certain exemptions, such as a homestead exemption for qualifying owners and senior/disabled exemptions in some counties. The availability, eligibility criteria, and dollar amounts vary, so property owners should consult their county assessor’s office for details.

Sources

• According to the U.S. Census Bureau's American Community Survey (ACS) (5‑year estimates, 2023) for median home value, effective property tax rate, and median annual tax amount.
• National comparison figures are also derived from the same ACS dataset.

All monetary values are rounded to the nearest dollar for readability.