Retirement Tax Breakdown for South Dakota Residents

Complete South Dakota retirement tax guide: income tax rates, capital gains treatment, Social Security and pension taxation, property taxes, and sales tax. Overall retiree-friendliness rank: #3 of 51.

State Income Tax
No income tax
Capital Gains Rate
0%

Treated as capital income

Property Tax Rate
1.12%

#16 (Moderate)

Sales Tax Rate
6.4%

State 4.5% + local avg 6.4%

Tax-Friendly State

South Dakota has no state income tax. Social Security, pensions, and capital gains are all tax-free. Property taxes are moderate. Sales tax is average.

Retirement Income Taxation

Social Security

Not taxed

Pension Income

Not taxed

Retirement Exemption

None

Tax Comparison Summary

State income tax0%
Capital gains0%
Property tax1.12% effective
Sales tax6.4% combined
Overall retiree rank#3 of 51

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