South Dakota veteran benefits

South Dakota has no state income tax, so military retirement pay is not taxed. Totally and permanently disabled veterans get a $200,000 property tax exemption, and the state runs a veterans home in Hot Springs and a veterans cemetery in Sioux Falls.

Military retirement paySouth Dakota has no individual income tax, so military retirement pay and Thrift Savings Plan withdrawals are not taxed by the state.
Property taxA veteran who is permanently and totally disabled from service gets a $200,000 exemption off the full value of their owner-occupied house, garage and lot. An unremarried surviving spouse who receives dependency and indemnity compensation may also qualify. Get a VA statement of your permanent and total rating (Sioux Falls VA Regional Office, 1-800-827-1000) and apply to your County Director of Equalization by November 1. Once approved, you do not have to reapply. Paraplegic veterans with a specially designed home may be fully exempt on the house, garage and up to one acre.
Disabled veteran property tax exemption
Taxes
$200,000 off the value of the owner-occupied home for permanent and total service-connected veterans; apply by November 1.
Paraplegic veteran full exemption
Taxes
Full property tax exemption for veterans who lost the use of both legs and live in a home designed for wheelchair use.
Michael J. Fitzmaurice SD Veterans Home
Health & Homes
100-bed state veterans home in Hot Springs, open to resident veterans and spouses.
South Dakota State Veterans Cemetery
Burial
Cemetery in Sioux Falls with no fee for the veteran's burial; spouses and dependents pay $1,002. The state reimburses up to $200 for a government headstone.
Free tuition for veterans
Education
One month of free undergraduate tuition at state universities and technical colleges for each month of qualifying wartime service, from one to four years, after VA education benefits are used.
$10 four-year hunting and fishing license
Recreation
Resident disabled veterans rated 40%+ and former POWs can get a four-year license for $10.
Free lifetime state park entrance
Recreation
Resident veterans rated 100%, former POWs and Purple Heart recipients get free lifetime park entrance and half-price camping.
State and local hiring preference
Jobs
Preference order is disabled veterans, spouses of disabled veterans, veterans, then unremarried surviving spouses.

Last checked 2026-11. State rules change often; confirm with South Dakota Department of Veterans Affairs before you rely on any benefit.

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