South Dakota Disabled Veteran Property Tax Exemption (2026)

In South Dakota, a veteran rated permanently and totally disabled from a service-connected disability can exempt $200,000 of the home's full and true value from property tax.1

That is South Dakota's disabled veteran property tax exemption under SDCL 10-4-40, and it is a partial exemption, not a full one.1 Two more routes sit beside it: a separate $200,000 exemption for surviving spouses under SDCL 10-4-41, which covers the un-remarried surviving spouse of a veteran rated permanently and totally disabled or of a veteran whose service-connected death brings dependency and indemnity compensation (DIC),2 and a full exemption under SDCL 10-4-24.10 for a paraplegic veteran whose home is designed for wheelchair use.3 Each one is claimed by application through the county, and the South Dakota Department of Revenue's deadline is November 1.1,3

In This Guide

• Do You Qualify for the South Dakota Disabled Veteran Property Tax Exemption?
• How Much the South Dakota Disabled Veteran Property Tax Exemption Is Worth
• What a Surviving Spouse Can Claim
• The Full Exemption for Paraplegic Veterans
• How to Apply by November 1
• How Long the Exemption Lasts
• If You Missed the Deadline or Your VA Claim Is Still Pending
• Other South Dakota Property Tax Relief
• Frequently Asked Questions
• Learn More

Do You Qualify for the South Dakota Disabled Veteran Property Tax Exemption?

Two things decide whether the South Dakota disabled veteran property tax exemption applies to you: what your rating from the U.S. Department of Veterans Affairs says, and how you hold and use the home.

On the rating side, SDCL 10-4-40 covers a veteran "rated as permanently and totally disabled" from a service-connected disability, and the South Dakota Department of Revenue lists the same requirement: the veteran must be rated permanently and totally disabled as a result of a service-connected disability.1 Because SDCL 10-4-40 is written around a permanent and total rating, that is the phrase to look for on your VA rating paperwork. If your letter uses different wording and you aren't sure where you stand, ask your county director of equalization before you assume you're in or out.

On the property side, South Dakota asks for three things together. The home has to be owned by the veteran, it has to be occupied by the veteran, and it has to be a dwelling, or the portion of a dwelling, classified as owner-occupied.1 The Department of Revenue describes this in practical terms: the property the exemption covers is the same property that is eligible for the owner-occupied classification.1

How Much the South Dakota Disabled Veteran Property Tax Exemption Is Worth

Under SDCL 10-4-40, $200,000 of the full and true value of a qualifying South Dakota veteran's owner-occupied home is exempt from property taxation.1 The South Dakota Department of Revenue phrases the same program as exempting "up to $200,000 of the assessed value" of qualifying property.1 The statute's term is full and true value and the Department's is assessed value; if the difference matters for your bill, your county director of equalization can show you how it was applied to your home.

SDCL 10-4-40 makes South Dakota's $200,000 disabled veteran property tax exemption a partial exemption, not a full one.1 For a home exempted in full, South Dakota has a separate paraplegic veteran exemption, covered below.3

The three South Dakota routes side by side:

What a Surviving Spouse Can Claim

A South Dakota surviving spouse doesn't have to rely on the veteran's own exemption. SDCL 10-4-41 creates a separate one: $200,000 of the full and true value of an owner-occupied dwelling is exempt from property taxation when it is owned and occupied by a qualifying surviving spouse.2

SDCL 10-4-41 has two doors into it, and either one is enough. The first is for the surviving spouse of a veteran who was rated permanently and totally disabled from a service-connected disability. The second is for a surviving spouse who receives dependency and indemnity compensation (DIC) from the VA as a result of the veteran's service-connected death.2 That second door matters for a widow or widower whose spouse died of a service-connected condition before any permanent and total rating was issued: under SDCL 10-4-41, receiving DIC is a qualifying route on its own.2

The surviving spouse must apply on the form prescribed by the South Dakota Secretary of Revenue, and the application stays confidential.2 Remarriage is one of the events that ends a South Dakota surviving spouse's SDCL 10-4-41 exemption: under the statute, a surviving spouse keeps the exemption until the property is transferred, the surviving spouse no longer occupies the home, the surviving spouse remarries, or the property's use changes.2 The Department of Revenue's own description of the program likewise speaks of property owned and occupied by an "un-remarried surviving spouse."2

The Full Exemption for Paraplegic Veterans

South Dakota's third route is narrower and worth more. Under SDCL 10-4-24.10, a dwelling designed for wheelchair use, as provided in SDCL 10-4-24.9, that is owned and occupied for the full calendar year in which the tax is levied by a paraplegic veteran, a veteran with the loss or loss of use of both lower extremities, or that veteran's unremarried widow or widower is exempt from taxation.3 The South Dakota Department of Revenue describes the result as exempting the property "from all property taxes," so this is a full exemption rather than a $200,000 one.3

Two conditions carry most of the weight. For South Dakota's paraplegic veteran exemption under SDCL 10-4-24.10, the home has to be specifically designed for wheelchair use within the structure, as the South Dakota Department of Revenue states the requirement.3 The paraplegic veteran, or the unremarried widow or widower, must also own and occupy the wheelchair-designed home for the full calendar year in which the tax is levied to receive the SDCL 10-4-24.10 exemption.3 The design standard itself lives in SDCL 10-4-24.9, and your county director of equalization is the person to ask whether a particular home meets it.

How to Apply by November 1

South Dakota's disabled veteran exemptions are claimed by application. The veteran or surviving spouse has to apply, on a form prescribed by the South Dakota Secretary of Revenue.1,2

Privacy is built in. Under SDCL 10-4-40 and 10-4-41, any application for the disabled veteran or surviving spouse exemption, and any document filed with it, is confidential.1,2

If you want help with the VA side, such as getting a permanent and total rating decided in the first place, our guide to VA benefits for senior care in South Dakota explains where South Dakota veterans and families can turn for help with a VA claim.

How Long the Exemption Lasts

For the $200,000 South Dakota disabled veteran exemption, one approval carries forward. Once the county director of equalization determines that the veteran receives the exemption, SDCL 10-4-40 lets the veteran keep it until the property ownership is transferred, the veteran stops occupying the dwelling, or the property has a change in use.1 A change or amendment to the property's legal description does not end the exemption while the veteran continues to live in the home.1 The SDCL 10-4-41 surviving spouse exemption carries forward the same way, plus remarriage.2

The paraplegic veteran exemption is the one where South Dakota's two official sources read differently, and it's better to know that now than to find out from a tax bill. SDCL 10-4-24.10 says that once the county director of equalization determines a veteran or unremarried widow or widower is entitled to the exemption, they retain it until ownership transfers, they stop occupying the dwelling, or the property's use changes.3 The South Dakota Department of Revenue's page, however, says paraplegic veteran applications "must be submitted annually" to the local county assessor's office on or before November 1.3 Because the statute and the Department's page don't say the same thing, ask your county director of equalization, each year until you have a clear answer, whether your county expects a new paraplegic veteran application.

If You Missed the Deadline or Your VA Claim Is Still Pending

Missing November 1 isn't always the end of the year's South Dakota exemption. What you can recover depends on which route you're on and why you were late.

A South Dakota veteran who would otherwise qualify for the $200,000 exemption but missed the owner-occupied classification deadline or the exemption's application deadline may petition the board of county commissioners to recalculate the taxes, and the board may abate or refund the difference under SDCL chapter 10-18.1 That relief is at the board's discretion.

There is one case where it isn't. If the only requirement a South Dakota veteran is missing is the application deadline, because a claim for a permanent and total disability rating is pending with the U.S. Department of Veterans Affairs, SDCL 10-4-40 says the county board must abate or refund the difference in taxes accumulated since the effective date of the claim, but not exceeding the previous four years.1 So a South Dakota veteran waiting on a VA decision can still petition the county board once the rating comes through.

The other two routes are discretionary only:

• Surviving spouses: a South Dakota surviving spouse who meets every requirement of SDCL 10-4-41 except the application deadline may petition the board of county commissioners, and the board may abate or refund the difference in taxes accumulated over a period not exceeding the previous four years.2
• Paraplegic veterans: a South Dakota veteran who would otherwise qualify under SDCL 10-4-24.10 but missed a deadline may petition the board of county commissioners to refund the taxes paid in any of the previous four years, and the board may, in its discretion, approve or reject the refund.3

Other South Dakota Property Tax Relief

For South Dakota property tax relief outside these three veteran exemptions, see our guide to South Dakota senior property tax relief.

Learn More

Find personalized help claiming South Dakota's disabled veteran property tax exemption at brevy.com.

The information on Brevy.com is for educational purposes only and is not a substitute for professional legal, financial, or medical advice. Rules vary by state and program and change frequently. Always verify with the relevant agency or a qualified professional. Brevy is not a law firm, financial advisor, or healthcare provider.