Military retirement and state taxes
South Dakota has no state income tax, so military retirement, VA disability pay and wages aren't taxed by the state.
Ellsworth Air Force Base
VA loans in South Dakota
Can you use a VA loan in South Dakota?
Yes. You can use a VA loan anywhere in South Dakota, from Rapid City to Sioux Falls. South Dakota has no state income tax, so your military retirement isn't taxed by the state. We lend in South Dakota and help military families buy across the state, including Guard and Reserve families.
Good to know
What's different about buying in South Dakota
Property tax help for disabled Veterans
South Dakota takes up to $150,000 off the assessed value of a home owned by a Veteran rated 100% or paid at 100% for unemployability. Apply through your local tax office after you move in.
Box Elder is growing fast
New missions at Ellsworth are bringing more families to Box Elder and Rapid City. Getting pre-approved before you arrive helps you move quickly.
Tax rules shown are general and current as of October 2026. Confirm the details with your county or the state before you rely on them.
PCSing to South Dakota?
Bases I help families buy near
Wherever your orders say, we lend there. Here's where families usually look.
- Ellsworth Air Force BaseBox Elder, Rapid City
Buying near Ellsworth Air Force Base →
South Dakota questions
Straight answers
Does South Dakota tax military retirement pay?
South Dakota has no state income tax, so military retirement, VA disability pay and wages aren't taxed by the state. VA disability compensation isn't taxed.
What property tax breaks do disabled Veterans get in South Dakota?
South Dakota takes up to $150,000 off the assessed value of a home owned by a Veteran rated 100% or paid at 100% for unemployability. Rules and amounts can change, so confirm with your local tax office.
Can I use a VA loan anywhere in South Dakota?
Yes. VA loans work in cities, suburbs and rural areas across South Dakota, as long as the home will be your main residence and meets VA property standards. We lend statewide, so we can help wherever you're buying.
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Buying in South Dakota? Let's talk.
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