South Dakota Veteran Benefits 2026: Property Tax Exemptions and Military Retired Pay Tax

The state benefits South Dakota gives veterans and their surviving spouses: property tax exemptions, how the state taxes military retired pay, and other benefits, each with who qualifies, the amount, how to apply and the official source.

South Dakota exempts $200,000 of the full and true value of an owner-occupied home owned by a veteran rated permanently and totally disabled from a service-connected disability. The same $200,000 exemption applies to the un-remarried surviving spouse of a P&T-rated veteran, or of a veteran whose service-connected death qualifies the spouse for VA Dependency and Indemnity Compensation (DIC). Paraplegic veterans, and veterans who have lost the use of both legs, pay no property tax on a home designed for wheelchair use. South Dakota has no state income tax, so military retired pay is not taxed. Other state benefits include free tuition at public universities and technical colleges, a reduced-fee small game and fishing license, a lifetime state park entrance license, veterans' preference in public hiring, and the Michael J. Fitzmaurice State Veterans Home. (sources)

Official sources Checked against official sources on November 4, 2026. This page lists only benefits confirmed on an official state or federal page; counties and cities may offer more.

Property tax exemptions
Military retired pay tax
Other veteran benefits
Common questions

Property tax exemptions for veterans in South Dakota

South Dakota property tax benefits for veterans and surviving spouses (checked November 4, 2026)
Benefit	Who qualifies	Amount	How to apply	Source
Disabled veteran partial property tax exemption (SDCL 10-4-40)	Veteran rated by the VA as permanently and totally disabled from a service-connected disability, who owns and occupies a dwelling classified as owner-occupied. The statute sets no age or income limit.	$200,000 of full and true value of the dwelling (house, garage and lot) exempt from property taxation	Apply on the Department of Revenue form, with a VA letter confirming permanent and total service-connected disability, to the county director of equalization (assessor) by November 1 (DOR deadline). The exemption continues until the property is transferred, the veteran stops occupying it, or its use changes. If the only thing a veteran missed was the deadline, he or she may petition the county commission for an abatement or refund. If the deadline was missed because a P&T claim was pending with the VA, the board must refund taxes back to the claim's effective date, for up to the previous four years.	SDCL 10-4-40: Partial exemption for owner-occupied dwellings of certain disabled veterans
Surviving spouse partial property tax exemption (SDCL 10-4-41)	Surviving spouse who has not remarried, and who either (1) is the spouse of a veteran rated permanently and totally disabled from a service-connected disability, or (2) receives VA Dependency and Indemnity Compensation because of the veteran's service-connected death. The spouse must own and occupy a dwelling classified as owner-occupied. The statute sets no age or income limit.	$200,000 of full and true value of the dwelling exempt from property taxation	Apply on the Department of Revenue form to the county director of equalization (assessor) by November 1 (DOR deadline). The exemption ends when the property is transferred, the spouse remarries, the spouse stops occupying the home, or the home's use changes. A spouse who missed the deadline may petition the county commission, which may abate or refund taxes for up to the previous four years.	SDCL 10-4-41: Partial exemption for owner-occupied dwellings of surviving spouses of certain veterans
Paraplegic veteran property tax exemption (SDCL 10-4-24.10)	Paraplegic veteran, veteran with the loss or loss of use of both lower extremities, or the un-remarried widow or widower of such a veteran. They must own and occupy the dwelling for the full calendar year, and the dwelling must be specifically designed for wheelchair use. No income limit.	Full exemption from all property taxes on the dwelling	Apply on the Department of Revenue form to the county director of equalization (assessor) by November 1 (DOR deadline). The exemption continues until the property is transferred, the owner stops occupying it, or its use changes. A late filer may petition the county commission for a refund of taxes paid in any of the previous four years.	SDCL 10-4-24.10: Exemption for dwelling of paraplegic or amputee veteran or surviving spouse

Is military retired pay taxed in South Dakota?

South Dakota state income tax on military retired pay (checked November 4, 2026)
Treatment	Amount or limit	Source
Not taxed. South Dakota does not impose a state individual income tax, so military retired pay, SBP annuities and all other income are untaxed at the state level.	No limit; 100% untaxed (no state income tax)	dor.sd.gov

For the dollars this treatment adds to (or saves on) a retiree’s state tax in 2026, see the military retirement tax by state study; for the pension itself, the military retirement pay calculator.

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Other South Dakota veteran benefits

Vehicles and license plates

South Dakota: vehicles and license plates for veterans
Benefit	Who qualifies	Amount	Source
Special distinctive veteran license plates	Veterans (SDCL 33A-2-1) who are South Dakota residents	Plates available. The SDDVA page does not state fees and refers applicants to the Department of Revenue for eligibility and application.	vetaffairs.sd.gov

Hunting, fishing and other licenses

South Dakota: hunting, fishing and other licenses for veterans
Benefit	Who qualifies	Amount	Source
Reduced-fee small game and fishing license	South Dakota resident who has a VA 'K' award letter or a veteran's allotment for a 40% total service-connected disability, or a Social Security benefits letter showing a 40% disability plus proof of active-duty, Reserve or National Guard service, or discharge papers showing former POW status. Residents who are totally disabled and confined to a wheelchair also qualify.	Reduced fee. The SDDVA page does not state the dollar amount; Game, Fish and Parks sets the fee.	vetaffairs.sd.gov
Disabled Veteran and Prisoner of War Lifetime State Park Entrance License	South Dakota resident deemed 100% total and permanent disabled, or a VA 'K' award recipient	Lifetime state park entrance license plus 50% off camping fees	vetaffairs.sd.gov

Education

South Dakota: education for veterans
Benefit	Who qualifies	Amount	Source
Free undergraduate tuition at Board of Regents universities and state technical colleges (SDCL 13-55-2)	South Dakota resident veteran (SDCL 33A-2-1 and 33A-2-2) who qualifies for resident tuition. A veteran who qualifies solely through a service-connected disability needs a VA rating of 10% or more. The veteran must first use all federal tuition benefits.	Tuition waived for one academic month per month of qualifying service (or major fraction of a month). Minimum 1 academic year, maximum 4 academic years.	sdlegislature.gov
Free tuition for children of service members who died in service (SDCL 13-55-6)	South Dakota resident under age 25 whose parent was a veteran who had been a bona fide South Dakota resident for at least 6 months before entering active service and who died from any cause while serving in the armed forces	Free tuition, with no charges or costs, at any Board of Regents institution or state technical college	sdlegislature.gov

Employment

South Dakota: employment for veterans
Benefit	Who qualifies	Amount	Source
Veterans' preference in state and local government employment (SDCL ch. 33A-2)	Honorably discharged veterans who are U.S. citizens and meet the service conditions of SDCL 33A-2. The same preference extends to the un-remarried spouse of a veteran who died in service or from a service-connected cause, and to the spouse of a disabled veteran who cannot use the preference.	Preference for appointment, employment and promotion with the state, counties, municipalities and school districts. A veteran who meets the minimum qualifications is granted an interview, and a service-connected disabled veteran ranks ahead of a non-disabled veteran. No point value is stated.	vetaffairs.sd.gov

State veterans homes

South Dakota: state veterans homes for veterans
Benefit	Who qualifies	Amount	Source
Michael J. Fitzmaurice State Veterans Home (long-term care and independent living)	Veteran (SDCL 33A-2-1) who is eligible for VA per diem for domiciliary or nursing home care in a state home. Veterans domiciled in South Dakota within the past 5 years, and members of federally recognized tribes located in the state, get admission preference. A spouse married to and living with the veteran for at least 1 year may be admitted with the veteran.	Long-term care and independent living. The source does not state costs.	vetaffairs.sd.gov

Common questions

Does South Dakota have a property tax exemption for disabled veterans?

South Dakota lists 3 veteran property tax benefits. The main one: Disabled veteran partial property tax exemption (SDCL 10-4-40). Who qualifies: Veteran rated by the VA as permanently and totally disabled from a service-connected disability, who owns and occupies a dwelling classified as owner-occupied. The statute sets no age or income limit.. Amount: $200,000 of full and true value of the dwelling (house, garage and lot) exempt from property taxation (SDCL 10-4-40: Partial exemption for owner-occupied dwellings of certain disabled veterans).

How do I apply for the South Dakota veteran property tax exemption?

Apply on the Department of Revenue form, with a VA letter confirming permanent and total service-connected disability, to the county director of equalization (assessor) by November 1 (DOR deadline). The exemption continues until the property is transferred, the veteran stops occupying it, or its use changes. If the only thing a veteran missed was the deadline, he or she may petition the county commission for an abatement or refund. If the deadline was missed because a P&T claim was pending with the VA, the board must refund taxes back to the claim's effective date, for up to the previous four years. (SDCL 10-4-40: Partial exemption for owner-occupied dwellings of certain disabled veterans).

Does South Dakota tax military retirement pay?

Not taxed. South Dakota does not impose a state individual income tax, so military retired pay, SBP annuities and all other income are untaxed at the state level. Amount or limit: No limit; 100% untaxed (no state income tax) (dor.sd.gov).

What other benefits do veterans get in South Dakota?

Free undergraduate tuition at Board of Regents universities and state technical colleges (SDCL 13-55-2) (sdlegislature.gov); Free tuition for children of service members who died in service (SDCL 13-55-6) (sdlegislature.gov); Reduced-fee small game and fishing license (vetaffairs.sd.gov); Disabled Veteran and Prisoner of War Lifetime State Park Entrance License (vetaffairs.sd.gov); Special distinctive veteran license plates (vetaffairs.sd.gov); Veterans' preference in state and local government employment (SDCL ch. 33A-2) (vetaffairs.sd.gov); Michael J. Fitzmaurice State Veterans Home (long-term care and independent living) (vetaffairs.sd.gov). Who qualifies and the amounts are in the tables above.

Sources

Every row above is copied from the official page linked beside it. Benefits change with new laws and local decisions, so confirm the amount and the deadline with the office that runs the program before you apply. QuantCalc is calculation software, not legal, tax or benefits advice. Last updated November 4, 2026.

South Dakota senior property tax relief → South Dakota state income tax for retirees → Veteran benefits in every state → Military retirement tax by state 2026 → Military retirement pay calculator → 2026 VA disability rates → Military retiree and VA COLA 2027 → VA loan limits 2026 →