Motor Vehicle Excise Tax Exemption (Disabled Veterans)
Exemption from 4% excise tax on the purchase of one motor vehicle for qualifying disabled veterans.
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Apply directly through the official South Dakota agency.
About this benefit
Eligibility
SD resident veteran who meets one of the following: recipient of a VA "K" award; recipient of an automobile under Public Law 187; recipient of statutory benefit for loss or loss of use of one or more extremities; or recipient of a veteran's allotment for total disability from a service-connected injury incurred during wartime. Honorable discharge required.
Note
The exemption is available to veterans with 100% disability rating OR with specific service-connected conditions such as loss or loss of use of limbs, regardless of rating percentage. Veterans with these conditions who have a lower rating should contact their county treasurer's office to verify eligibility.
Estimated value
SD motor vehicle excise tax is 4%, so on a $30,000 vehicle, the savings would be $1,200.
How to apply
Contact the SD Department of Revenue or your County Treasurer's office.
Verified against official source
Last checked 2026-05-06 against sdlegislature.gov. Always confirm current rates and rules with the South Dakota state agency before applying.
Other South Dakota Tax Benefits
No State Individual Income Tax
South Dakota has no state individual income tax, so all military retirement pay and VA compensation are state-tax-free.
No state income tax on any income
Disabled Veteran Property Tax Exemption (100% P&T)
Exempts $200,000 of the home's full and true value from property taxes for permanently and totally disabled veterans.
$200,000 property tax exemption
Paraplegic Veteran Full Property Tax Exemption
Complete property tax exemption on the residence (up to one acre) for paraplegic veterans with wheelchair-adapted homes.
Full property tax exemption
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