Property tax relief for seniors in South Dakota

Assessment freeze for the elderly and disabled

What it does

The freeze keeps your home's assessed value from going up. Your tax rate can still change, but higher home values do not raise your bill.

Who qualifies

You must also:

• be 65 or older, or disabled, by the rules on the form
• own and live in the home, or hold a life estate in it
• have owned the home for five years, unless you had the freeze last year

A widow or widower who has not remarried may also qualify. If you qualified before, the home value limit may not apply to you. Income is your household's income for the previous calendar year.

How to apply

1. Get the assessment freeze form. New forms come out each January.
2. Fill in your household income for the past year.
3. Turn it in to your County Treasurer by April 1.
4. Ask your County Treasurer whether you must file again next year. The five-year ownership rule is waived if you had the freeze the year before.

Property tax deferral (homestead exemption) at 70

What it does

If you are 70 or older, you can put off paying property tax on your home. You do not pay the tax now. Instead, the unpaid tax becomes a lien on the home. Interest and penalties apply, and the taxes are paid when the property is sold. Some people qualify for a lower interest rate under state law.

How to apply

Apply with your County Treasurer by April 1. Ask the treasurer about the other rules and how much interest is charged.

Think before you choose

Deferral helps if you are short on cash, but the debt grows with interest. It reduces what you or your heirs get when the home is sold. Talk with your family before you sign.

Sales and property tax refund

What it does

The state gives back part of the sales tax or property tax you paid during the year. You do not have to own a home to apply.

Who qualifies

• You are 65 or older, or disabled.
• You lived in South Dakota the whole year.
• Your income for the year was at or below the limit.

How to apply

1. Apply between May 1 and July 1.
2. Apply online at sddor.seamlessdocs.com/f/2050, or call 1-800-829-9188, option 1, to ask for a paper form.
3. Checks go out in early September.

The income limits and refund amounts change every year.

Rapid City residents

If you live in Rapid City, a city property tax reduction for older and disabled residents with limited income is also offered through the Pennington County Treasurer. It lowers your city property taxes in the year after you apply.

Disabled veterans

If you are a veteran rated permanently and totally disabled from a service-connected disability, the first $200,000 of your home's value can be exempt from property tax. A widow or widower who has not remarried may also qualify. Apply with your County Director of Equalization by November 1. Once approved, it lasts until the property is sold or transferred.

Things people miss

• Deadlines are firm. The freeze and deferral are due April 1. The refund window closes July 1.
• Keep the freeze going. The five-year ownership rule and the home value limit can be waived only if you had the freeze before.
• The refund is not only for homeowners. It covers sales tax too.

Free help

• Department of Revenue, property tax questions: 1-800-829-9188, option 2, or email [email protected]. Address: 445 East Capitol Ave, Pierre, SD 57501.
• Department of Revenue, refund program: 1-800-829-9188, option 1.
• Your County Treasurer for the freeze and deferral forms.
• Dakota at Home: 1-833-663-9673, for other help for older adults.

For other programs, see all benefits in South Dakota, and Social Security retirement for how benefits count as income.

Phone numbers: Free help lines for South Dakota agencies

Check what you may qualify for