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State Benefit·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.

Verified May 12, 2026againstdor.sd.gov

At a glance

Benefit type
Tax Benefits — South Dakota
Who it's for
Veterans, Active Duty, National Guard, Reservists, Spouses, Survivors, Dependents
VA rating needed
No rating requirement
Estimated value
No state income tax on any income
Where it applies
South Dakota
Last verified
May 12, 2026

What is No State Individual Income Tax?

No State Individual Income Tax is a South Dakota tax benefits benefit for veterans, active duty, national guard, reservists, spouses, survivors, dependents. South Dakota has no state individual income tax, so all military retirement pay and VA compensation are state-tax-free. The listed value is No state income tax on any income.

Who qualifies

VeteransActive DutyNational GuardReservistsSpousesSurvivorsDependents
  • Available to any veteran
  • South Dakota residency

How to apply

Apply through the official South Dakota agency.

Open application

Who is eligible

Eligibility

All South Dakota residents. South Dakota does not levy a state individual income tax, which means all military retirement pay, VA disability compensation, and other income is state-tax-free.

What No State Individual Income Tax covers

Estimated value

Varies by income; a retiree receiving $30,000/year saves $1,000-$2,000+ compared to states with income tax.

How to apply for No State Individual Income Tax

How to apply

Automatic for all SD residents.

Open applicationVerify at official source

Verified information & sources

Last verified: May 12, 2026

Official source: dor.sd.gov

Compiled and fact-checked against the official source linked above. Benefit rules and dollar amounts change over time — always confirm current details at the official source before applying. A county Veterans Service Officer (VSO) is a free, accredited advocate who can review your eligibility and help you file at no cost.

Frequently asked questions about No State Individual Income Tax

Who qualifies for No State Individual Income Tax?▾
No State Individual Income Tax is for Veterans, Active Duty, National Guard, Reservists, Spouses, Survivors, Dependents; available to any veteran; south dakota residency. See the eligibility details on this page and confirm with the official source before applying.
How much is No State Individual Income Tax worth?▾
The listed value is No state income tax on any income. Amounts can change — confirm the current figure at the official source linked on this page.
How do I apply for No State Individual Income Tax?▾
Apply through the official source linked on this page. A county Veterans Service Officer (VSO) can review your eligibility and help you file at no cost.
Where can I verify No State Individual Income Tax?▾
Benefit rules and dollar amounts change, so always confirm current details at the official source linked on this page. A free, accredited county or state Veterans Service Officer (VSO) can also verify your eligibility and help you apply.

Other South Dakota Tax Benefits

Motor Vehicle Excise Tax Exemption (Disabled Veterans)

Exemption from 4% excise tax on the purchase of one motor vehicle for qualifying disabled veterans.

~$1,200 on a $30,000 vehicle

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

See every benefit you qualify for in South Dakota

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