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.
State BenefitSouth DakotaTax Benefits
Verified May 12, 2026 against dor.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
- Veterans
- Active Duty
- National Guard
- Reservists
- Spouses
- Survivors
- Dependents
- Available to any veteran
- South Dakota residency
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.
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.
How VetUnlock verifies benefitsFrequently 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)~$1,200 on a $30,000 vehicleExemption from 4% excise tax on the purchase of one motor vehicle for qualifying disabled veterans.
- Disabled Veteran Property Tax Exemption (100% P&T)$200,000 property tax exemptionExempts $200,000 of the home's full and true value from property taxes for permanently and totally disabled veterans.
- Paraplegic Veteran Full Property Tax ExemptionFull property tax exemptionComplete property tax exemption on the residence (up to one acre) for paraplegic veterans with wheelchair-adapted homes.