The short version
- Social Security taxed?
- No
- Income tax
- No income tax
- Property tax on a $300,000 home
- ≈ $3,000 / yr ($250 / mo)
- Everyday cost index (U.S. = 100)
- 92
- January / July high
- 29°F / 85°F
- Sales tax (state + local avg)
- 6.11%
Retiring in South Dakota
No income tax and low living costs with good care in Sioux Falls. Watch out: winters are long and brutal.
How South Dakota taxes your retirement income
Social Security: not taxed at all.
Pensions: No state income tax.
401(k) and IRA withdrawals: No state income tax.
The setup: No income tax.
Property tax & senior breaks
The average effective property tax rate is about 1.00% — roughly $3,000 a year ($250 a month) on a $300,000 home. Your county sets the real number.
Help for seniors: Assessment freeze and tax refund for lower-income homeowners 65+.
Try your own home value in the Property Tax Estimator.
Everyday costs & sales tax
Overall cost of living runs about 8% below the U.S. average. The combined state and average local sales tax is 6.11%.
Weather
January days top out around 29°F and July days around 85°F, with roughly 211 sunny days a year. Watch out for: Blizzards and severe cold; tornadoes in the east.
Healthcare
Sanford and Avera give Sioux Falls strong care; the west is remote.