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South Dakota veteran disability benefits

State benefits that South Dakota offers veterans with a service-connected disability, on top of your federal VA compensation. Each one links to its official source. This is educational information, not legal advice, and South Dakota's agency makes the final eligibility call.

Property taxRequires a 100% Permanent & Total rating

Disabled Veteran Dwelling Exemption

Exempts $200,000 of the full-and-true value of a dwelling for permanently and totally disabled veterans.

Surviving spouses get a $150,000 exemption.

Official source (verified 2026-06-08)
Property tax

Paraplegic/Wheelchair Veteran Dwelling Exemption

Full property tax exemption on a specially adapted dwelling for veterans with loss/loss of use of both lower extremities.

Based on specific loss of use of lower extremities rather than a percentage; dwelling must be wheelchair-accessible.

Official source (verified 2026-06-08)
Income tax

No State Income Tax

South Dakota has no personal income tax, so military retirement and VA disability pay are untaxed.

Statewide; not veteran-specific.

Official source (verified 2026-06-08)

Most state benefits scale with your VA combined rating.

Estimate your combined rating for free, then see what you can claim to reach the thresholds above.

VA Disability Pro is an independent tool. It is not the VA, not a law firm, and not a VA-accredited representative. State benefits and eligibility change; always confirm with the official sources linked above.