South Dakota tax burden — broken down.
South Dakota’s combined tax burden (income + property + sales) lands at 5.81% on our composite — ranking #48 of 51 jurisdictions. South Dakota levies no state income tax — burden comes entirely from property and sales taxes.
South Dakota burden, broken into 3 components
| Component | South Dakota rate | National median |
|---|---|---|
| Top marginal income | 0.00% | ~5.30% |
| Effective property | 1.31% | ~1.07% |
| State sales tax | 4.50% | ~5.50% |
| Combined composite | 5.81% | ~11.87% |
National medians from CalcFi’s 51-state composite. Top marginal is the headline single-filer rate, NOT the effective rate most households actually pay.
Retirement + Social Security in South Dakota
South Dakota does NOT tax most retirement income (pensions, IRA / 401(k) distributions). Social Security benefits are NOT taxed by South Dakota. Federal taxation of these income sources is unchanged regardless of state.
How South Dakota compares
Of all 51 US jurisdictions ranked by combined burden composite, South Dakota sits at #48. That puts South Dakota in the bottom 10 lowest-burden states — high-earners frequently move here from CA/NY for the income-tax savings, even when factoring property/sales tradeoffs. For the live cross-state heat map, see the interactive tax burden map.
South Dakota metros — local tax overlay
State rates are uniform across South Dakota— but local income, property, and sales taxes vary. Click any metro to run the full income tax calculator pre-populated with that city’s local layer.
- Sioux Fallsproperty 1.20% · pop 0.3Mmedian $64,200 →
- Rapid Cityproperty 1.20% · pop 0.1Mmedian $58,500 →
More South Dakota metros coming as we expand city coverage.
South Dakota tax — common questions
What is the South Dakota top marginal income tax rate in 2025?
South Dakota levies no state income tax. Top marginal rate is 0%.
What is the South Dakota effective property tax rate?
South Dakota's statewide effective property tax rate is 1.31% of home value (annual). On a $400,000 home that's roughly $5,240/yr. Local variation can be ±0.5pp.
Does South Dakota tax retirement income or Social Security?
South Dakota does NOT tax most retirement income, and does NOT tax Social Security benefits.
Are there any South Dakota-specific tax quirks I should know about?
No state income tax. SD is a major trust-jurisdiction state — dynasty trusts can avoid state income tax indefinitely (no rule against perpetuities), driving inbound trust assets >$700B.
Reviewed by CalcFi Editorial · Source: Tax Foundation State Individual Income Tax Rates (Jan 2025). Last verified 2026-04-19. Methodology at /about/editorial.