Senior, Veteran and Disability Property Tax Relief in South Dakota

Assessment freeze for the elderly and disabled: an owner-occupant 65 or older (or disabled under the Social Security Act) of a single-family dwelling who has been a South Dakota resident for five years (unless the freeze was received the previous year) and lived in the home at least 200 days the previous year can keep the home from increasing in value for tax purposes. Limits stated in March 2026: household income less than $56,595 (single-member) or less than $66,885 (multiple-member), and a value limit of $514,500 of full and true value; the property covers the house, garage and lot or one acre, whichever is less. Unremarried surviving spouses may qualify. Apply annually to the county treasurer by April 1. Homestead exemption (deferral): people 70 or older (or a surviving spouse) meeting income and residency requirements can delay paying property taxes until the property is sold; the taxes become a lien with interest. Rapid City residents may also get a municipal tax reduction (income limits apply).

Disabled veteran exemption (SDCL 10-4-40): property owned and occupied by a veteran rated permanently and totally disabled as the result of a service-connected disability, or an unremarried surviving spouse, has the first $200,000 of valuation exempted. Paraplegic veteran exemption (SDCL 10-2-24.10): a home owned and occupied by a paraplegic veteran or a veteran with loss or loss of use of both lower extremities (or an unremarried surviving spouse), specially designed for wheelchair use, is exempt from all property taxes. Both are filed with the county Director of Equalization by November 1 and remain until the property is transferred or sold.

People disabled under the Social Security Act can use the assessment freeze on the same terms as seniors. A paraplegic or person with loss or loss of use of both lower extremities (or an unremarried surviving spouse) whose home is designed for wheelchair use may get a property tax reduction on a graduated income scale (SDCL 10-4-24.11; income and occupancy limits apply; apply annually by April 1). Disabled residents with low incomes may also qualify for the tax refund for senior and disabled citizens.

Tax refund for senior and disabled citizens: South Dakota residents all of 2025 who were 65 by January 1, 2025 or disabled during 2025, and who live alone with yearly income of $17,215 or less or in a household with combined income of $23,265 or less, may apply May 1 to July 1 to the Department of Revenue, Special Tax Division (homestead deferral recipients are not eligible). SB 245 (2026) directs revenue from the 0.3% sales tax increase returning on July 1, 2027 to lowering the school owner-occupied levy, with a one-time payment so every homeowner sees a lower school levy on the 2027 bill. SB 96 (2026) lets counties adopt a local sales tax of up to 0.5% (referable to a vote) to fund a credit on owner-occupied homes, beginning no earlier than January 1, 2027.