Loading...
Overall Rating: 89/100 · 66,000 veterans (10.1% of population)
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%
Most veterans considering South Dakota for relocation pair this with one of these next steps:
Compare side-by-side
Stack South Dakota against the other 49 states on tax breaks, healthcare, and employment preferences.
Don't skip
State property tax exemptions kick in at specific rating tiers. Get your rating before you relocate.
Quick calculator
Determines which South Dakota property tax tier you qualify for. 30 seconds.
Buying a home
$0 down, no PMI. Funding fee waived for service-connected veterans.
Sign up for free to use the interactive comparison tool, personalized savings calculator, and moving cost estimator.