South Dakota is one of the most veteran-friendly states in the nation. With zero state income tax, a 100% property tax exemption for 100% P&T disabled veterans, free DV plates, free hunting and fishing licenses for disabled vets, and tuition waivers for dependents of POW/MIA/KIA veterans, the Mount Rushmore State delivers exceptional value to those who served.
South Dakota is home to approximately 65,000 veterans and consistently ranks among the best states in the nation for veteran benefits. The combination of no state income tax, one of the best property tax exemptions in the country for 100% P&T disabled veterans, and strong support services makes the Mount Rushmore State an attractive destination for veterans seeking to maximize their benefits.
The South Dakota Department of Veterans Affairs administers state veteran programs and provides free accredited VA claims assistance through its network of service officers across the state. Ellsworth Air Force Base, a major B-21 installation, contributes to South Dakota's strong military culture.
South Dakota's property tax benefit for 100% permanently and totally disabled veterans is one of the strongest in the United States. Veterans rated 100% P&T by the VA receive a complete exemption from property taxes on their primary residence.
In a state where median home values have been rising — Sioux Falls and Rapid City in particular — this exemption can be worth thousands of dollars per year. On a home assessed at $350,000 with a typical SD mill rate, the annual savings can reach $4,000 to $7,000 depending on the county.
To apply, bring your VA disability letter confirming 100% P&T status and your DD-214 to your county director of equalization. The exemption applies to your primary residence only, and must be renewed annually in most South Dakota counties.
Complete property tax exemption on primary residence. One of the most generous veteran property tax benefits in the United States. Apply at your county director of equalization.
Paraplegic veterans and veterans with service-connected loss of use of both limbs receive full property tax exemption under SD law, in addition to 100% P&T veterans.
Surviving spouses of veterans who qualified for the property tax exemption may continue to receive the benefit. Contact your county equalization office for eligibility rules.
Apply by March 15 of each year at your county director of equalization. Bring your VA disability letter (100% P&T documentation) and DD-214 to each annual filing.
South Dakota is one of only nine states with no state income tax of any kind. For veterans, this means:
The compounding effect of no income tax plus a 100% property tax exemption makes South Dakota exceptionally financially attractive for 100% P&T disabled veterans and military retirees. A veteran receiving $3,800/month in VA compensation ($45,600/year) saves what would be $2,000-$5,000+ annually in states with income taxes.
The South Dakota Board of Regents (SDBOR) governs six public universities: South Dakota State University (SDSU), University of South Dakota (USD), South Dakota School of Mines and Technology, Dakota State University, Black Hills State University, and Northern State University. These universities also include several technical institutes.
Children and spouses of South Dakota veterans who were prisoners of war, missing in action, or killed in action qualify for tuition waivers at SDBOR institutions. This benefit recognizes the ultimate sacrifice made by SD veterans and ensures their families have access to higher education at no tuition cost.
To apply, contact the financial aid or veterans services office at the SDBOR institution you wish to attend. Documentation will include the veteran's military records establishing POW/MIA/KIA status and proof of the applicant's relationship to the veteran.
Members of the South Dakota National Guard may qualify for the Guard's tuition assistance program for enrollment at South Dakota public colleges and universities. Contact the SD National Guard's State Education Center for details on current programs and eligibility requirements.
South Dakota provides free Disabled Veteran (DV) license plates for qualifying disabled veterans. Veterans with qualifying service-connected disabilities receive:
Apply at any South Dakota county motor vehicle office with your VA disability letter and DD-214. South Dakota operates a straightforward application process with minimal paperwork for veteran vehicle benefits.
South Dakota provides veterans preference in state civil service hiring. Veterans who meet minimum qualifications receive preference points added to their examination scores, giving them an advantage over equally qualified non-veteran candidates. Disabled veterans receive enhanced preference.
Veterans seeking state employment should register their veteran status through the South Dakota Bureau of Human Resources and apply for positions through the state's online employment portal. The veteran preference applies to competitive positions across state government agencies.
South Dakota provides free hunting and fishing licenses to veterans with a 100% service-connected disability rating from the VA. This benefit has significant recreational and financial value in South Dakota, which is world-famous for pheasant hunting, walleye fishing, and other outdoor recreation.
South Dakota's pheasant hunting season is internationally renowned, drawing hunters from across the country. Free licenses give 100% disabled veterans access to these experiences without the cost of annual licensing. Apply through the South Dakota Game, Fish and Parks Department with your VA disability documentation.
SD is one of the top pheasant hunting destinations in North America. Free licenses for 100% disabled vets open access to this world-class experience.
Lakes Oahe, Sharpe, and Francis Case are legendary walleye fisheries. Free fishing licenses for 100% disabled veterans provide access all season long.
South Dakota offers deer, elk, antelope, and other big game hunting. Free licenses for 100% disabled vets include access to draw applications for limited licenses.
Missouri River flyway waterfowl hunting is exceptional. Free licenses give 100% disabled veterans full access during duck and goose seasons.
A 100% P&T rating in South Dakota means zero property taxes and zero income taxes. Ensure every service-connected condition is rated accurately.
Start Your Free Claim Review →Explore the full South Dakota state veterans benefits page. Use the VA Disability Pay Calculator to estimate your monthly compensation, or compare SD benefits with other states.