South Dakota Veteran Benefits
Complete guide to state benefits for South Dakota veterans in 2026
South Dakota Tax Advantage
South Dakota has no state income tax! Military retirement pay, VA disability compensation, and all other income are completely tax-free at the state level.
South Dakota Veteran Benefits Summary: South Dakota offers no state income tax, property tax exemptions for disabled veterans ($150,000 for paraplegic veterans), free tuition at state schools for dependents of deceased/disabled veterans, and state veterans' homes. South Dakota has approximately 65,000 veterans.
State Income Tax
Military retirement: No state tax
VA disability: No state tax
South Dakota is one of 9 states with no income tax.
Property Tax Exemptions
- Paraplegic veteran: $150,000 exemption
- Disabled veteran: Varies by disability
- Surviving spouse: May continue exemption
Education Benefits
- Free tuition: For dependents of deceased/disabled veterans
- State universities: Covered for qualifying dependents
Employment Benefits
- Veterans' Preference: Points in state hiring
- Disabled veteran: Additional preference
2026 BAH Rates for South Dakota
| Location | E-5 w/Dep |
|---|---|
| Ellsworth AFB | $1,434 |