Social Security benefits in South Dakota
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Is Social Security Taxed in South Dakota?
Short answer: No. South Dakota does not impose a state income tax, so Social Security benefits are not taxed by the state. 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).
Federally, up to 85% of benefits can be taxable depending on your combined income (IRS Pub 915); that part doesn't change by 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.
Social Security benefits in South Dakota
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Individuals / Personal Taxes
No. South Dakota does not impose a state income tax, so Social Security benefits are not taxed by the state. 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 does not impose a state income tax, so Social Security benefits are not taxed by the state. 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). Federally, up to 85% of benefits can be taxable depending on your combined income (IRS Pub 915); that part doesn't change by state.
Category
- Personal Tax Deductions