Retiring in South Dakota: Key Facts
✅ South Dakota does not tax retirement income — Social Security, pensions, and 401k/IRA withdrawals are not taxed at the state level.
| Factor | South Dakota |
|---|---|
| Retirement Ranking | #10 of 51 |
| State Income Tax | None |
| Retirement Income Tax | Not taxed ✅ |
| Property Tax Rate | 1.14% |
| Median Home Value | $296,000 |
How Much Do You Need to Retire in South Dakota?
Using the 4% rule: your nest egg should be 25× your annual expenses. In South Dakota, with no state tax on retirement income, your effective spending power is higher.
| Annual Spending | Nest Egg Needed | Monthly from $1M |
|---|---|---|
| $30,000/yr | $750,000 | $3,333/mo |
| $40,000/yr | $1,000,000 | $3,333/mo |
| $50,000/yr | $1,250,000 | $3,333/mo |
| $60,000/yr | $1,500,000 | $3,333/mo |
| $75,000/yr | $1,875,000 | $3,333/mo |
| $100,000/yr | $2,500,000 | $3,333/mo |
Calculate Your South Dakota Retirement Date
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Is South Dakota a good state to retire in?
South Dakota ranks #10 for retirement. It is considered one of the better states to retire in.
Does South Dakota tax Social Security?
No — South Dakota does not tax Social Security or most other retirement income.
Related: 401k Calculator · Savings by Age