Does South Dakota tax military retirement pay?
No state income tax
No. South Dakota has no individual income tax on wages or retirement income, so military retired pay is not taxed by the state.
In the state's own words
Copied word for word from the official document linked below each quote:
“South Dakota is one of seven states that does not impose a state income tax.”
Other retirement income in South Dakota
No. South Dakota has no state income tax. The South Dakota pension page has the details, and the South Dakota Social Security page covers Social Security. No. South Dakota has no state income tax.
Before you file or move
This page is about state income tax only. Your federal return has its own rules for military retired pay, and VA disability compensation is a separate benefit from retired pay. State rules change, and the details (age, years, which kinds of pay qualify, survivor benefits) matter. Check with the South Dakota Department of Revenue before you file or move.
Other states in the same group
Check our work
The answer above comes from this document. Follow the link and compare.
- TaxesSouth Dakota Department of Revenue. Read on November 13, 2026.