How the South Dakota Property Tax Works

How the South Dakota Property Tax Works


Table of Contents

Table of Contents

South Dakota has a fairly straightforward property tax system. Local governments, such as municipalities and school districts, set tax rates based on the full market value of residential property. The state’s median effective property tax rate being 1.08%. South Dakota homeowners living in their principal residence are eligible for a tax discount.

How the South Dakota Property Tax Works

South Dakota property taxes can be imposed by any of the following groups of tax authorities: school districts, cities, townships, counties, water districts, and other special districts for specified purposes such fire protection or sanitary systems. Taxes are calculated using a home’s genuine market value, which is assessed yearly by the county director of equalization within every county.

Homeowners that believe their assessment is excessive (greater than they could receive by selling their home) have the opportunity to dispute the valuation. Appeals ought to be submitted to the local board of equalization before the middle of March. The local board will conduct a hearing and notify you of its verdict by the end of the month.

If you disagree with that verdict, you can file additional appeals to the county board, the Office of Hearing Examiners, and finally the circuit court.

Find out more: Publication 530 (2023), Tax Information for Homeowners | Internal Revenue Service

What are the South Dakota Property Tax Rates?

The tax rate on a property in South Dakota is the sum of all the rates for the tax districts in which it is located, including school districts, towns, and counties.

An owner-occupied dwelling, or a property in which the owner lives, is taxed at a lower rate than other forms of property. New homeowners only have to apply once for owner-occupied status. If you have already gotten classified, you will continue to get the property tax discount for as long as you own or reside in the residence. The owner-occupied categorization lowers school district property taxes for homeowners.

South Dakota’s tax rates are represented in mills, which are equivalent to one-tenth of a percent. In other terms, one mill equals $1 in taxes every $1,000 of home value. However, because tax rates can vary greatly from one location to the next, it is also helpful to think about property taxes with respect to of effective property tax rate. This rate makes it simple to distinguish between property taxes by calculating how much homeowners pay in taxes as a proportion of their home’s worth.

County Median Home Value Median Annual Property Tax Payment Average Effective Property Tax Rate
Aurora County $86,600 $1,244 1.44%
Beadle County $120,900 $1,630 1.35%
Bennett County $100,000 $1,421 1.42%
Bon Homme County $89,000 $1,400 1.57%
Brookings County $187,100 $2,427 1.30%
Brown County $171,200 $2,288 1.34%
Brule County $157,500 $1,483 0.94%
Buffalo County $625
Butte County $153,000 $1,820 1.19%
Campbell County $63,500 $1,172 1.85%
Charles Mix County $127,900 $1,436 1.12%
Clark County $108,500 $1,140 1.05%
Clay County $168,100 $2,491 1.48%
Codington County $182,400 $2,050 1.12%
Corson County $55,600 $746 1.34%
Custer County $232,000 $2,087 0.90%
Davison County $153,600 $2,010 1.31%
Day County $110,600 $1,431 1.29%
Deuel County $120,300 $1,394 1.16%
Dewey County $65,900 $950 1.44%
Douglas County $84,100 $1,205 1.43%
Edmunds County $110,600 $1,206 1.09%
Fall River County $136,800 $1,833 1.34%
Faulk County $88,200 $936 1.06%
Grant County $136,200 $1,314 0.96%
Gregory County $97,300 $1,293 1.33%
Haakon County $116,200 $989 0.85%
Hamlin County $161,400 $1,921 1.19%
Hand County $120,100 $1,139 0.95%
Hanson County $139,900 $1,445 1.03%
Harding County $97,400 $1,428 1.47%
Hughes County $181,400 $2,169 1.20%
Hutchinson County $111,600 $1,526 1.37%
Hyde County $104,300 $1,352 1.30%
Jackson County $58,600 $712 1.22%
Jerauld County $74,200 $945 1.27%
Jones County $84,700 $806 0.95%
Kingsbury County $118,700 $1,368 1.15%
Lake County $170,300 $2,060 1.21%
Lawrence County $224,200 $2,503 1.12%
Lincoln County $240,200 $3,557 1.48%
Lyman County $109,600 $1,080 0.99%
McCook County $152,300 $1,679 1.10%
McPherson County $62,600 $901 1.44%
Marshall County $126,300 $1,310 1.04%
Meade County $207,700 $2,529 1.22%
Mellette County $817
Miner County $87,000 $1,028 1.18%
Minnehaha County $201,500 $2,829 1.40%
Moody County $152,700 $1,861 1.22%
Pennington County $197,200 $2,661 1.35%
Perkins County $100,700 $1,289 1.28%
Potter County $106,000 $1,429 1.35%
Roberts County $107,000 $1,398 1.31%
Sanborn County $106,700 $1,298 1.22%
Spink County $89,500 $1,385 1.55%
Stanley County $154,900 $1,965 1.27%
Sully County $130,800 $1,236 0.94%
Todd County $26,600 $850 3.20%
Tripp County $100,800 $1,101 1.09%
Turner County $137,500 $1,597 1.16%
Union County $206,300 $2,586 1.25%
Walworth County $96,700 $1,615 1.67%
Yankton County $152,800 $1,873 1.23%
Ziebach County $68,800 $515 0.75%

Source: SmartAsset

Minnehaha County

Minnehaha County is South Dakota’s largest county, with an estimated population of about 200,000. It also includes the state’s biggest municipality, Sioux Falls. The county’s median effective tax rate is 1.40%, which is slightly higher than the South Dakota average. Mill rates in the county vary according to where you live.

Pennington County

Pennington County encompasses Rapid City, South Dakota’s second-largest city. The county’s median effective property tax rate being 1.35 percent. The average homeowner currently contributes $2,661 in property taxes per year.

Lincoln County

This county has the state’s highest property taxes. In Lincoln County, homeowners pay a median annual property tax of $3,557. Lincoln County has the state’s highest median house value of $240,200, which contributes significantly to the high tax payments. The county has an average effective property tax rate of 1.48%.

Brown County

Brown County is located on the state boundary with North Dakota. The county’s largest city being Aberdeen. Brown County’s property tax rates are around the state average, with an average effective rate of 1.34%.

Brookings County

The median property tax rate of Brookings County being 1.30%, somewhat more than the state average. Brookings County taxpayers pay an average annual property tax payment of $2,427. This ranks as one of the highest numbers of any county in the entire state.

Where to Go for South Dakota Property Tax Help

If you require extra assistance with South Dakota property taxes or general state tax information, please contact XOA TAX Service. We can connect you with a tax professional that is knowledgeable about your state. You may be able to get your taxes done by a competent tax specialist without having to visit an office.

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