Military retirement pay in South Dakota
Varies
Does South Dakota Tax Military Retirement Pay?
Short answer: No. South Dakota has no state personal income tax, so military retired pay is not taxed. With no income tax, South Dakota relies more on sales and property taxes; older homeowners get this break: Assessment freeze for 65+ or disabled owners with income under $56,595 single or $66,885 multi-member (2026).
Military retired pay is taxable federally; VA disability compensation isn't taxed federally or by any state.
Records to keep: Keep your state return, W-2s and 1099s (1099-R, SSA-1099), and any state credit worksheets. Check your state revenue department's current-year instructions before you file.
Military retirement pay in South Dakota
Varies
Individuals / Personal Taxes
No. South Dakota has no state personal income tax, so military retired pay is not taxed. With no income tax, South Dakota relies more on sales and property taxes; older homeowners get this break: Assessment freeze for 65+ or disabled owners with income under $56,595 single or $66,885 multi-member (2026).
Business justification
No. South Dakota has no state personal income tax, so military retired pay is not taxed. With no income tax, South Dakota relies more on sales and property taxes; older homeowners get this break: Assessment freeze for 65+ or disabled owners with income under $56,595 single or $66,885 multi-member (2026). Military retired pay is taxable federally; VA disability compensation isn't taxed federally or by any state.
Category
- Personal Tax Deductions