Does South Dakota tax pensions and retirement income?
No state income tax
No. South Dakota has no state income tax.
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.”
And Social Security?
No. South Dakota has no state income tax. The South Dakota Social Security page quotes the rule.
Federal tax still applies
Whatever South Dakota does, pensions, annuities and traditional IRA or 401(k) withdrawals are generally taxable on your federal return. See the federal tax brackets and, if you are 73 or older, the required minimum distribution calculator.
State rules change, and the details (age limits, income limits, which plans qualify) 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 12, 2026.