Overview of South Dakota Taxes
Across South Dakota, the average effective property tax rate is 1.36%. This is slightly higher than the national average.
Enter Your Location
Assessed Home Value
| Average Tax Rate |
| Property Taxes |
of Assessed Home Value
of Assessed Home Value
of Assessed Home Value
- About This Answer...read more
To calculate the exact amount of property tax you will owe requires your property's assessed value and the property tax rates based on your property's address. Please note that we can only estimate your property tax based on median property taxes in your area. There are typically multiple rates in a given area, because your state, county, local schools and emergency responders each receive funding partly through these taxes. In our calculator, we take your home value and multiply that by your county's effective property tax rate. This is equal to the median property tax paid as a percentage of the median home value in your county.
- Our Assumptions...read more
- Our Tax Expert
Jennifer Mansfield Tax
Jennifer Mansfield, CPA, JD/LLM-Tax, is a Certified Public Accountant with more than 30 years of experience providing tax advice. SmartAsset’s tax expert has a degree in Accounting and Business/Management from the University of Wyoming, as well as both a Masters in Tax Laws and a Juris Doctorate from Georgetown University Law Center. Jennifer has mostly worked in public accounting firms, including Ernst & Young and Deloitte. She is passionate about helping provide people and businesses with valuable accounting and tax advice to allow them to prosper financially. Jennifer lives in Arizona and was recently named to the Greater Tucson Leadership Program.
We pay $30 for 30 minutes on the phone to hear your thoughts on what we can do better. Please enter your email if you'd like to be contacted to help.
Please enter your name
Please enter a valid email
South Dakota Property Taxes
The state of South Dakota has a relatively simple property tax system. Tax rates, set by local government bodies such as municipalities and school districts, are applied to the full market value of residential property. Across the state, the average effective property tax rate is 1.36%, slightly higher than the national average. Homeowners living in a primary residence in South Dakota are eligible for a tax rate reduction. If you are interested in purchasing a property in South Dakota or want to refinance one, have a look at our mortgage guide for information on rates and getting a mortgage in the Mount Rushmore State. Read on to learn more about that and other important South Dakota property tax rules.
How Property Taxes Work in South Dakota
Property taxes in South Dakota can be levied by any of the following tax authorities: school districts, cities, townships, counties, water districts and additional special districts for specific purposes such as fire protection or sanitary systems. Taxes are based on a home’s true market value, which is determined annually by the county director of equalization in each county.
Homeowners who believe their assessment is too high (higher than they could get by actually selling their home) have the right to appeal the valuation. Appeals are filed through the local board of equalization, and should be made by mid-March. The local board will hold a hearing and inform you of their of their decision by the end of the month.
If you disagree with that finding, further appeals can be made with the county board, and then the Office of Hearing Examiners, and finally the circuit court.
South Dakota Property Tax Rates
The tax rate on a home in South Dakota is equal to the total of all the rates for tax districts in which that home lies, including school districts, municipalities and counties.
Owner occupied residences are eligible for a lower tax rate than other types of property. New homeowners need to apply once for owner-occupied classification. Once they are granted that classification, they will be eligible to pay a lower school district rate than the rate applies to other types of property.
South Dakota’s tax rates are expressed as mills, which are equal to one-tenth of a percent. In other words, one mill is equal to $1 of taxes for every $1,000 in home value. The effective rate is the taxes paid as a percentage of home value. The table below shows average effective rates for every county in South Dakota.
|County||Median Home Value||Median Annual Property Tax Payment||Average Effective Property Tax Rate|
Eastern South Dakota’s Minnehaha County has a population of just over 173,000, making it the largest county in the state. It also contains the state’s largest city, Sioux Falls. The county’s average effective tax rate is 1.22%, somewhat higher than the South Dakota average.
Mill rates in the county vary depending on where you live. The Minnehaha County general mill rate has historically been about 2.5 mills, while the Sioux Falls rate is about 4.5 mills. School district rates are the largest single source of taxes. The Sioux Falls School District rate is around 8.4 mills for owner-occupied residences, and 13.1 for all other types of property.
Penning County stretches from the Wyoming border west to Badlands National Park. It contains Rapid City, the second largest city in North Dakota. The county’s average effective property tax rate is 1.45%, 18th highest in the state. In Rapid City, the total mill rate on owner-occupied residences is around 19 mills. That includes the county general rate, the Rapid City municipal rate and the Rapid City School District Rate.
This eastern South Dakota county has among the highest property taxes in the state. The median annual property taxes paid by homeowners in Lincoln County is $2,695, the highest amount in the state. That is almost $900 more than the state median and $600 more than the national median. The county’s average effective property tax rate is 1.46%.
Brown County is situated along the state border with North Dakota. The county’s largest city is Aberdeen. Property tax rates in the county are near the state average: the average effective property tax rate in Brown County is 1.38%.
Owner-occupied residences in South Dakota are eligible for property tax rates significantly lower than those on other types of property (like investment properties or second homes). For example, the school district tax rate in Brookings County is 10.16 mills (as of 2011). The school district tax rate on non-owner occupied homes is 50% higher: 15.25 mills. On a home worth $200,000, that would amount to a difference of $1,000 annually.
Property Tax: Which Counties are Getting the Best Bang for Their Buck
SmartAsset’s interactive map highlights the places across the country where property tax dollars are being spent most effectively. Zoom between states and the national map to see the counties getting the biggest bang for their property tax buck.
Our study aims to find the places in the United States where people are getting the most for their property tax dollars. To do this we looked at school rankings, crime rates and property taxes for every county.
As a way to measure the quality of schools, we calculated the average math and reading/language arts proficiencies for all the school districts in the country. Within each state, these schools were then ranked between 1 and 10 (with 10 being the best) based on those average scores.
For each county, we calculated the violent and property crimes per 100,000 residents.
Using the school and crime numbers, we calculated a community score. This is the ratio of the school rank to the combined crime rate per 100,000 residents.
We used the number of households, median home value and average property tax rate to calculate a per capita property tax collected for each county.
Finally, we calculated a tax value by creating a ratio of the community score to the per capita property tax paid. This shows us the counties in the country where people are getting the most bang for their buck, or where their property tax dollars are going the furthest.
Sources: US Census Bureau 2016 American Community Survey, Department of Education, Federal Bureau of Investigation, State Police or Justice Department websites