The Homestead Exemption in South Dakota
Who qualifies for the South Dakota homestead property tax exemption, how much it saves, and how and when to apply.
Short answer: South Dakota's main owner-occupied relief is the owner-occupied classification: a house, condominium, townhouse, duplex, triplex, fourplex, or manufactured or mobile home lived in by the owner as a primary residence is classified as owner-occupied and taxed under the separate… South Dakota Department of Revenue, Property Tax; Property Tax Relief Programs (July 2026)
| Homestead exemption | South Dakota's main owner-occupied relief is the owner-occupied classification: a house, condominium, townhouse, duplex, triplex, fourplex, or manufactured or mobile home lived in by the owner as a primary residence is classified as owner-occupied and taxed under the separate owner-occupied school levy. An individual can claim only one owner-occupied property in the state, and commercial property owners cannot use it. What South Dakota calls its "Homestead Exemption" is actually a tax deferral for people 70 or older (see senior_exemption). Owner-occupied school levy: https://dor.sd.gov/media/pzopolsk/2026-pt-tax-reduction-programs.pdf |
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| How to apply | Send the owner-occupied certificate to the county Director of Equalization; property previously designated owner-occupied stays that way unless sold. The assessment freeze, homestead deferral, municipal reduction and paraplegic reduction are filed every year (by April 1) with the county treasurer (paraplegic reduction: county auditor per the relief programs page), with applications available online or at the courthouse starting in January. The disabled veteran and paraplegic veteran exemptions are filed with the county Director of Equalization (assessor) and, once approved, remain until the property is transferred or sold. Program summary: https://dor.sd.gov/media/pzopolsk/2026-pt-tax-reduction-programs.pdf |
| Application deadline | Owner-occupied certificate: March 15 (to the county Director of Equalization). Assessment freeze, homestead deferral, municipal reduction and paraplegic reduction: April 1, each year. Disabled veteran and paraplegic veteran exemptions: November 1. Tax refund for senior and disabled citizens: May 1 to July 1. Owner-occupied: https://dor.sd.gov/individuals/taxes/property-tax/ |
| Limits on assessment increases | Senate Bill 216 (2025) caps annual increases in overall owner-occupied valuation at 3% in each county and limits local government property tax budgets to 3% annual growth. The changes first appeared in 2026 assessment notices and apply to taxes paid in 2027; both limits are temporary and last five years. The Department describes the cap as applying to overall owner-occupied valuation in each county. Seniors and disabled owners who qualify can also freeze their home's assessment. |
More South Dakota property tax & homestead exemptions
- Senior, Veteran and Disability Property Tax Relief in South Dakota
- Appealing Your Property Tax Assessment in South Dakota
- All South Dakota property tax & homestead exemptions rules
FAQ
What is the homestead exemption in South Dakota?
South Dakota's main owner-occupied relief is the owner-occupied classification: a house, condominium, townhouse, duplex, triplex, fourplex, or manufactured or mobile home lived in by the owner as a primary residence is classified as owner-occupied and taxed under the separate owner-occupied school levy. An individual can claim only one owner-occupied property in the state, and commercial property owners cannot use it. What South Dakota calls its "Homestead Exemption" is actually a tax deferral for people 70 or older (see senior_exemption).
How do you apply for a homestead exemption in South Dakota?
Send the owner-occupied certificate to the county Director of Equalization; property previously designated owner-occupied stays that way unless sold. The assessment freeze, homestead deferral, municipal reduction and paraplegic reduction are filed every year (by April 1) with the county treasurer (paraplegic reduction: county auditor per the relief programs page), with applications available online or at the courthouse starting in January. The disabled veteran and paraplegic veteran exemptions are filed with the county Director of Equalization (assessor) and, once approved, remain until the property is transferred or sold.
When is the deadline to apply for a homestead exemption in South Dakota?
Owner-occupied certificate: March 15 (to the county Director of Equalization). Assessment freeze, homestead deferral, municipal reduction and paraplegic reduction: April 1, each year. Disabled veteran and paraplegic veteran exemptions: November 1. Tax refund for senior and disabled citizens: May 1 to July 1.
How much can a home's assessed value go up each year in South Dakota?
Senate Bill 216 (2025) caps annual increases in overall owner-occupied valuation at 3% in each county and limits local government property tax budgets to 3% annual growth. The changes first appeared in 2026 assessment notices and apply to taxes paid in 2027; both limits are temporary and last five years. The Department describes the cap as applying to overall owner-occupied valuation in each county. Seniors and disabled owners who qualify can also freeze their home's assessment.
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.