Homeowners and renters are missing out on millions of dollars in tax relief. Use the resources below to learn more.
South Dakota
You may be eligible to receive money back
South Dakota Program Overview
Property Tax-Aide features three statewide programs in South Dakota: Sales or Property Tax Refund for Senior Citizens and Citizens with Disabilities, Assessment Freeze for Elderly and Disabled, and the Property Tax Homestead Exemption.
We also feature the Property Tax Reduction from Municipal Taxes for the Elderly and Disabled program, which is currently only been adopted by Rapid City. In addition, Property Tax-Aide features the Municipal Property Tax Refund for the Elderly and People with Disabilities program in Sioux Falls.
Sales or Property Tax Refund for Senior Citizens and Citizens with Disability
This program offers eligible seniors and disabled individuals receive a yearly refund of property taxes.
Eligibility
- You were a resident of South Dakota during all of 2022
- You must be 65 on or before January 1, 2022. You may be eligible if you are widow/widower under 65, and your spouse received a property tax refund on your home in the year before your spouse died and you continue to live in the same house and have not remarried.
- You had 2022 income under $14,949 if single or $20,141 combined household income. In addition to adjusted gross income on your IRS tax return include Social Security and V.A. benefits and railroad retirement. For homeowners, up to $400 of your real estate taxes can be deducted from your income. For renters, 10% of your rent, up to $400, can be deduced from your income.
- For the property tax refund, you must have owned the house for at least three years or have been a resident of South Dakota for five or more years.
- If you currently receive property tax relief through the Homestead Exemption, you are not eligible for the property tax refund. (See Program 3)
- Disabled individuals are defined as disabled by the Social Security Act.
Application Deadline
- Application must be submitted to the Department of Revenue from May 1, but no later than July 1, 2023.
- Annual application is required. If you have previously applied and your address hasn’t changed from your last application, a new one will be mailed to you.
- The application should be mailed to Tax Refund Office: 445 E. Capitol Ave Pierre, South Dakota 57501-3185.
- If you have a problem completing the application, your county treasurer may assist you.
Required Documentation
- Include documentation to support your household income and your completed 2022 federal income tax return. This would include SSA1099 and other income verification.
- Proof of age, such as South Dakota driver’s license or state ID card.
- Homeowner must include a copy of the 2022 real estate tax notice which is due in 2023.
Contact Details
The South Dakota Department of Revenue Special Tax Division details the property tax relief programs. Relief Programs | South Dakota Department of Revenue (sd.gov)
Assessment Freeze for Elderly and Disabled
The freeze on assessments program prevents the homeowner’s property from increasing in value for tax purposes. This means that if the value of the home increases, the homeowner will pay tax on the former (lower) value. Property is defined as the house, garage, and the lot upon which it sits, or one acre, whichever is less.
Eligibility
- You must be 65 years or older before January 1 of the year you are applying. A un-remarried surviving spouse of person who previously qualified for the program may still qualify.
- You must own the property or have retained a life estate in the property for at least 1 year.
- You have resided in the house for at least 200 days during the previous calendar year.
- For the 2023 application for single member household, the income limit is $37,065, or for multi-member households the combined income is under $47,655. For 2024 application, for single member households, the income limit is less than $40,290 or for multi-member households, the income limit is $51,801.
- For the 2023 application, property with a full and true market value of $317,700 or more is not eligible unless the applicant has received the assessment freeze on the property in a prior year. For the 2024 application, property with a full and true market value of $345,340 or more is not eligible unless the applicant has received the assessment freeze on the property in a prior year.
Application Deadline
Applications are available online or at any county treasurer’s office beginning in January of each year and must be submitted annually to the local county treasurer’s office on or before April 1st.
Required Documentation
Include documentation to support your household income and your completed 2022 federal income tax return. This would include:
-
SSA1099 and other income verification • Proof of age, such as South Dakota driver’s license or state ID card.
Contact Details
For additional assistance from the SC DOR:
Phone: 1-800-829-9188
Email: [email protected]
Website: dor.sd.gov
OR
Contact your county treasurer. Contact information can be found on the Contact List for County Treasurers
For more information:
Property Tax Homestead Exemption (such programs are generally referred to as a deferral)
This program delays the payment of property taxes until the property is sold. The taxes are a lien on the property and must be paid along with the interest before the property can be transferred. Property is defined as the house, garage and the lot upon which it sits or one acre, whichever is less.
Eligibility
- You must be 70 years of age or older. You are a surviving spouse of someone previously eligible may also be eligible.
- You have owned a single-family house for 3 years or have been a resident of South Dakota for at least five years.
- The income limit is based on a year income of the previous calendar year. For the 2022 for 2023 application, the maximum is $16,000 if single and $20,000 for multiple member households for 2023 application. (Income levels for 2024 application are $17,392 for singles, $21,740 for multiple member households.). Income is the federal adjusted income plus any other income, including Social Security payments.
Application Deadline
Applications must be submitted annually to your county treasurer on or before April 1st.
Required Documentation
- Include documentation to support your household income, and your completed 2022 federal income tax return, if filed.
- Proof of age and residency, such as South Dakota driver’s license or state ID card, and proof of residency.
Contact Details
Applications are available beginning in January at your county courthouse or from the Property Tax Division’s website
For additional assistance:
Phone: 1-800-829-9188
Email: [email protected]
Website: https://dor.sd.gov
Property Tax Reduction from Municipal Taxes for the Elderly and Disabled (Rapid City only)
The Property Tax Reduction reduces homeowner’s city property tax the year following their application. Property is the house, garage, and the lot, up to one acre. The amount of tax reduction is based on a graduated scale depending on income. The program is only offered in cities that have passed an ordinance allowing for the reduction. Only Rapid City has approved such an ordinance.
Eligibility
- The property owner must be 65 years old or older.
- The applicant must have owned and resided in that property for at least 5 years.
- For single-member households the maximum income must be less than $19,566. The income for multi-member households must be less than $23,914.
Application Deadline
Applications must be submitted annually to your county treasurer on or before April 1st.
Required Documentation
- If you filed a federal income tax return, attach a copy of the return.
- Attach all documentation of income, including social security SSA-1099
Contact Details
Additional information:
Property Tax Relief Program: Reduction from Municipal Tax for the Elderly and Disabled
Applications are available online or at any county courthouse beginning in January of each year and must be submitted annually to your local county treasurer’s office on or before April 1st.
Applications can also be found on the Property Tax Division’s website at: https://dor.sd.gov/individuals/taxes/property-tax/relief-programs/
Municipal Property Tax Refund for the Elderly and People with Disabilities (Sioux Falls)
The City of Sioux Falls has established a program to refund the municipal portion of property taxes on owner-occupied homes for low-income elderly and disabled individuals as defined by the Social Security Act. Those individuals also had to have applied through Minnehaha County or Lincoln County and approved for South Dakota’s Assessment Freeze for Elderly and Disabled program.
The program is contingent upon City Council’s approving the program as part of the annual budgeting process. The tax refund is 100% of the municipal tax up to a maximum refund of $500.
The program is contingent upon City Council’s approving the program as part of the annual budgeting process. The tax refund is 100% of the municipal tax up to a maximum refund of $500.
Eligibility
- The homeowner must have an approved South Dakota Assessment Freeze for Elderly and Disabled Program (See Assessment Freeze program above) through Minnehaha County or Lincoln County county treasurer.
- Applicant must be 65 years or older or be considered disability as defined by the Social Security Act.
- Applicant must own the property or have retained a life estate in the property.
- For 2023 the true market value of the property must be less than $317,700 or less unless previously applied for the program.
- The income limits are $37,065 for singles or $47,655 for multi-member households.
- Applicant must have lived in the home for at least 200 days of the previous calendar year
- Property taxes must not be delinquent
Application Deadline
- You must have applied for the Assessment Freeze by April 1, 2022 to receive the refund in 2023. To receive a refund in 2024 homeowners must apply for the Assessment Freeze through the Minnehaha County or Lincoln County’s treasurer’s office before April 1, 2023.
- The City will automatically refund up to $500 of the municipal property tax to individuals approved through the Assessment Freeze for Elderly and Disabled Program the year AFTER they are approved by the county if the City’s refund program continues to be approved by the Sioux Falls City Council.
- Note that no application is needed. Once the Assessment Freeze has been approved and you are not delinquent in property tax, the City will process the refund.
Required Documentation
- Annual application for the Assessment Freeze is needed.
Contact Details
Additional information:
Municipal Property Tax Refund for the Elderly and People with Disabilities – City of Sioux Falls
Lincoln County Treasurer’s Office 104 N. Main Street, Suite 100 Canton SD 57013
(605) 764-5701
Minnehaha County Treasurer’s Offce 415 N. Dakota Avenue, Sioux Falls, SD 57104
(605) 367-4211
Your Resources
Property Tax-Aide has independently selected the property tax relief programs featured on this website that we think are the most relevant and beneficial to older adults. It is not an exhaustive list of all property tax relief programs available in each state. Please consult your local tax agency for a comprehensive listing of property tax relief programs in your area.