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Overall Rating: 89/100 · 66,000 veterans (10.1% of population)
Reviewed 2026. Programs and exemptions verified against South Dakota veterans-affairs and tax-authority sources.
Benefit details verified January 2025. Tax exemptions, caps, and eligibility change and can vary by county — always confirm current figures with your county assessor and your South Dakota Department of Veterans Affairs before you rely on them.
No state income tax
1.28% average effective rate
$200,000 of value (full if paraplegic)
100% P&T service-connected: $200,000 of valuation exempt. Paraplegic/wheelchair-adapted home: full exemption (need not be service-connected). Nothing below 100% P&T.
Source ↗No veteran-specific exemptions (4.2% state, food exempt)
$110,000
VA Medical Center
2501 West 22nd Street, Sioux Falls, SD 57105
(605) 336-3230
Primary care, mental health, specialty care, telehealth
Tuition assistance
Veterans attending SD colleges qualify for tuition assistance
4-year value: $10,000
Median Home
$335,000
1BR Rent
$850/mo
COL Index
89
Unemployment
2.4%
Major employers: Sanford Health, Avera Health, Smithfield Foods, Citibank
Pros: No income tax, VA facility, $200K property tax exemption for 100%, low cost of living
Cons: Very cold winters, no property tax relief under 100%
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Buying a home
$0 down, no PMI. Funding fee waived for service-connected veterans.
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Under South Dakota Codified Law ch. 3-3, honorably discharged veterans (and eligible spouses/surviving spouses) receive preference for appointment and promotion at all levels of government; executive-branch applicants who qualify are guaranteed an interview for preference-eligible positions.
Official source ↗Resident veterans rated 40% or totally service-connected disabled, and former POWs, can buy a 4-year combined hunting and fishing license for $10.
Official source ↗Resident veterans rated 100% service-connected disabled, former POWs, and Purple Heart recipients qualify for a free lifetime state park entrance license plus a 50% camping discount.
Official source ↗Qualifying resident disabled veterans (VA 'K' award, PL 187 auto grant, loss/loss of use of a limb, or a total service-connected disability allotment) pay only a flat $10 annual fee for a Disabled Veteran plate, with no separate vehicle registration fee.
Official source ↗The 100-bed state veterans home in Hot Springs provides nursing care, independent/assisted living, and dementia care; honorably discharged veterans who were SD residents at any time in the five years before applying, and their spouses/surviving spouses, may apply.
Official source ↗The dwelling of a veteran rated permanently and totally service-connected disabled receives a partial property-tax exemption (up to $200,000) that continues for the unremarried surviving spouse; surviving spouses receiving VA dependency and indemnity compensation also qualify for a $150,000 exemption.
Official source ↗Sourced from official state agencies; programs and eligibility change — confirm with your South Dakota Department of Veterans Affairs before applying.