SOUTH DAKOTA RETIREMENT INCOME TAX · TAX YEAR 2026
Does South Dakota tax Social Security and retirement income?
South Dakota has no personal income tax, so it does not tax Social Security, pensions or 401(k) and IRA withdrawals. A single 67-year-old with $24,000 of Social Security, a $20,000 private pension and $10,000 of IRA withdrawals pays no South Dakota income tax for 2026. Federal income tax on the same income is $1,810.
Your estimate
- South Dakota income tax
- $0.00
- Federal income tax
- $1,810.00
- Total income tax
- $1,810.00
Federal tax on South Dakota retirees at different incomes
Federal income tax is the only income tax a South Dakota retiree pays. These are 2026 federal figures for a single 67-year-old with $24,000 of Social Security, and for a married couple, both 67, with $20,000 each. Half the pension and IRA income is a private pension and half IRA withdrawals.
| Pension and IRA income | Single | Married |
|---|---|---|
| $20,000 | $0 | $0 |
| $40,000 | $4,030 | $1,210 |
| $60,000 | $7,158 | $5,084 |
| $100,000 | $16,486 | $9,884 |
| $150,000 | $29,072 | $20,352 |
Does South Dakota tax Social Security?
No. South Dakota has no personal income tax, so it does not tax Social Security benefits. Up to 85% of benefits can still be taxed on the federal return.
Of the single 67-year-old's $24,000 in benefits, $11,300 is federally taxable and South Dakota taxes none of it. Of the couple's $40,000, $28,100 is federally taxable and South Dakota taxes none of it.
Does South Dakota tax pensions?
No. South Dakota does not tax private pensions, government pensions or military retirement pay, at any age. They are still taxed on the federal return.
With $24,000 of Social Security and a $40,000 pension, a single 67-year-old pays no South Dakota income tax for 2026. Federal income tax on that income is $4,030.
Does South Dakota tax IRA and 401(k) withdrawals?
No. South Dakota does not tax traditional IRA or 401(k) withdrawals at any age. They are still taxed on the federal return; qualified Roth IRA withdrawals are not.
Does South Dakota have property tax breaks for seniors?
Homeowners 65 and older can freeze their home's assessed value when household income is under $56,595 for one person or $66,885 for more, the home is worth less than $514,500 and they have owned it for five years; those limits apply to applications due April 1, 2026, and change each year. Seniors with income of $17,215 or less ($23,265 for a household) can also get a refund of their 2025 sales or property tax, and owners 70 and older can defer property tax until the home is sold.
Does South Dakota have an estate or inheritance tax?
No. South Dakota repealed its inheritance tax effective July 1, 2001, and has no estate tax.
What the calculator leaves out
South Dakota property and sales taxes are not included.
Federal tax uses the 2026 brackets, the standard deduction with the extra amount at 65, and the $6,000 senior deduction. Estimates assume no other deductions, credits or local taxes except as noted.
Sources
- IRS Publication 915, Social Security benefits
- IRS Revenue Procedure 2025-32
- IRS: deductions for seniors under the One Big Beautiful Bill Act
- South Dakota Department of Revenue: individual taxes
- South Dakota Department of Revenue: freeze on assessments (December 2025)
- South Dakota Department of Revenue: property tax relief programs