South Dakota
SD · state · 9 cited facts
| Category | Provision | Value | Source |
|---|---|---|---|
| estate-none | Estate and inheritance tax | None | sources (1)South Dakota Department of Revenue, Individuals: Taxes page · high confidence · as of 2026-07-02 · TY 2025 SD inheritance tax repealed by voters effective July 1, 2001; no estate tax South Dakota does not have an inheritance tax. The voters of South Dakota repealed the state inheritance tax effective July 1, 2001.There is also no estate tax. Note: Missing space before 'There' is as-fetched (page markup artifact). sdlegislature.gov statute pages are JS-rendered and unfetchable. https://dor.sd.gov/individuals/taxes/ |
| no-tax | Capital gains tax | None South Dakota imposes no personal income tax | sources (1)South Dakota Department of Revenue Individual Income Tax · medium confidence · as of 2026-06-10 · TY 2025 South Dakota imposes no personal income tax; capital gains are not taxed South Dakota is one of a few states that does not impose a personal income tax. There is no individual income tax in South Dakota.https://dor.sd.gov/individuals/ |
| muni-instate | In-state muni bond interest | Exempt: no South Dakota state income tax | sources (1)South Dakota Department of Revenue Individual Income Tax · medium confidence · as of 2026-06-10 · TY 2025 South Dakota imposes no personal income tax; capital gains are not taxed South Dakota is one of a few states that does not impose a personal income tax. There is no individual income tax in South Dakota.https://dor.sd.gov/individuals/ |
| muni-outstate | Out-of-state muni bond interest | Exempt: no South Dakota state income tax | sources (1)South Dakota Department of Revenue Individual Income Tax · medium confidence · as of 2026-06-10 · TY 2025 South Dakota imposes no personal income tax; capital gains are not taxed South Dakota is one of a few states that does not impose a personal income tax. There is no individual income tax in South Dakota.https://dor.sd.gov/individuals/ |
| agency-obligations | GSE bond interest (FNMA/FHLMC) | Exempt: no South Dakota state income tax | sources (1)South Dakota Department of Revenue Individual Income Tax · medium confidence · as of 2026-06-10 · TY 2025 South Dakota imposes no personal income tax; capital gains are not taxed South Dakota is one of a few states that does not impose a personal income tax. There is no individual income tax in South Dakota.https://dor.sd.gov/individuals/ |
| dividend-qualified | Qualified dividend income | Moot: no South Dakota state income tax | sources (1)South Dakota Department of Revenue Individual Income Tax · medium confidence · as of 2026-06-10 · TY 2025 South Dakota imposes no personal income tax; capital gains are not taxed South Dakota is one of a few states that does not impose a personal income tax. There is no individual income tax in South Dakota.https://dor.sd.gov/individuals/ |
| treasury | U.S. Treasury interest | Exempt: no South Dakota state income tax | sources (1)South Dakota Department of Revenue Individual Income Tax · medium confidence · as of 2026-06-10 · TY 2025 South Dakota imposes no personal income tax; capital gains are not taxed South Dakota is one of a few states that does not impose a personal income tax. There is no individual income tax in South Dakota.https://dor.sd.gov/individuals/ |
| fhlb-ffcb | FHLB and FFCB bond interest | Exempt: no South Dakota state income tax | sources (1)South Dakota Department of Revenue Individual Income Tax · medium confidence · as of 2026-06-10 · TY 2025 South Dakota imposes no personal income tax; capital gains are not taxed South Dakota is one of a few states that does not impose a personal income tax. There is no individual income tax in South Dakota.https://dor.sd.gov/individuals/ |
| marital-elective-cp | Elective community property trust available | Yes: SDCL §§55-17-1 to 55-17-13 (South Dakota Community Property Trust Act) allows married couples to elect CP treatment for assets held in a qualifying SD trust; double step-up under IRC §1014(b)(6) is legally arguable but no IRS ruling confirms it | sources (1)IRS Publication 555 (Rev. December 2024), Introduction · medium confidence · as of 2026-06-22 · TY 2025 South Dakota elective community property: SDCL §§55-17-1 to 55-17-13 allows married couples to elect CP treatment via a qualifying trust This publication doesn't address the federal tax treatment of income or property subject to the 'community property' election under Alaska, Tennessee, and South Dakota state laws. Note: Primary statute: SDCL §§55-17-1 to 55-17-13 (South Dakota Community Property Trust Act, enacted 2016). Married couples may elect CP treatment for assets held in a qualifying SD trust. Double step-up benefit (IRC §1014(b)(6)) is legally arguable but no IRS ruling has confirmed it. IRS Pub. 555 (December 2024) confirms the election mechanism exists. https://www.irs.gov/publications/p555 |