Tax Benefits in South Dakota
South Dakota is tax-friendly for retirees. It has no state income tax, which means pensions, social security, and retirement incomes are not taxed. The average property tax rate is 1.22%.
Sales and Property Tax Details
South Dakota has a 4.5% state sales tax rate, and the average combined state and local rate is 6.4%. The state relies on property and sales taxes, with sales tax rates among the lowest nationwide. Government agencies and nonprofits are sales tax exempt. Groceries are taxed at 4.2%, while the median property tax bill is $2,331. There are no estate or inheritance taxes.
Living in South Dakota
The state boasts beautiful landscapes, friendly communities, a strong economy, and a low cost of living. However, winters are harsh and urban amenities are fewer than in bigger cities.
Tax Refunds for Seniors and Disabled Individuals
Eligible senior citizens and disabled individuals receive a yearly refund of sales or property taxes. To qualify, you must:
- Own the property
- Be over 65 years of age or be disabled
- Meet income limits