South Dakota charges no state income tax, but the 1.22% average property tax rate is above the national median — your property tax bill is a significant part of your monthly payment. This calculator uses South Dakota-specific defaults: $290,000 median home price, 1.22% property tax, and $1,800/year average insurance.
Last updated: March 13, 2026
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Monthly Payment (South Dakota)$0
Loan Details — South Dakota
South Dakota median: $290,000
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Below 20% triggers PMI on conventional loans
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Average 30-year fixed ~6.75% (March 2026)
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South Dakota average: 1.22%
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South Dakota average: $1,800/yr
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Property Tax
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South Dakota Metro Area Home Prices
Click a metro to load its median price into the calculator above.
Yearly Amortization Schedule+
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South Dakota's Tax Landscape and Your Mortgage
South Dakota is one of nine states with no state income tax. That extra take-home pay makes a real difference in mortgage qualifying — a household earning $150,000 keeps roughly $5,000-$10,000 more annually compared to states with 5-7% income tax rates. That translates to an additional $400-$800/month that lenders factor into your debt-to-income ratio.
At the state's median home price of $290,000, the $1.22% property tax rate adds $295/month to your mortgage payment. That's $3,538/year — near the national median of ~1.1%.
Property Taxes Across South Dakota
The 1.22% statewide average masks significant variation. Property taxes are above average and serve as the primary state revenue source
Price ranges across the state: Sioux Falls has a median of $315,000, while Rapid City sits at $310,000 — a $5,000 gap that dramatically changes your monthly payment. At $1.22% property tax, that price difference alone means $5/month more in property tax in Sioux Falls.
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Homebuyer Programs and Exemptions
South Dakota offers several programs for homebuyers:
SDHDA First-Time Homebuyer program with competitive rates
Down payment assistance grants
Homestead exemption: Tax reduction on owner-occupied dwelling based on income; assessment freeze for seniors/disabled
South Dakota-Specific Considerations
No state income tax — one of 9 states
Property taxes are above average and serve as the primary state revenue source
Popular for high earners relocating — no income tax, no corporate income tax, favorable trust laws
Severe weather (hail, blizzard) increases insurance costs
Property tax rates vary by county — Minnehaha County (Sioux Falls) ~1.3% vs some western counties under 1%
Compare South Dakota Mortgage Rates
See personalized rates from South Dakota lenders. LendingTree matches you with up to 5 offers so you can compare and save.
0.39% property tax, 5% top rate. Median home: $232,500.
Alaska Mortgage Calculator
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1.04% property tax, no income tax. Median home: $340,000.
Arizona Mortgage Calculator
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0.62% property tax, 2.5% top rate. Median home: $395,000.
Frequently Asked Questions
What is the average property tax rate in South Dakota?
The average effective property tax rate in South Dakota is 1.22%. On a $290,000 home (the state median), that works out to approximately $3,538/year or $295/month added to your mortgage payment. Property tax rates vary by county and school district within South Dakota — always check your specific jurisdiction's rate. Homestead exemption: Tax reduction on owner-occupied dwelling based on income; assessment freeze for seniors/disabled
How much does homeowners insurance cost in South Dakota?
The average annual homeowners insurance premium in South Dakota is approximately $1,800 ($150/month). This is near the national average of approximately $1,500/year. Actual premiums depend on your home's location, age, construction type, and coverage limits.
What first-time homebuyer programs are available in South Dakota?
SDHDA First-Time Homebuyer program with competitive rates. Down payment assistance grants. These programs typically have income limits, purchase price caps, and may require homebuyer education courses. Check the South Dakota housing finance agency website for current eligibility requirements and application deadlines.
How does South Dakota's lack of income tax affect home buying?
South Dakota has no state income tax, which means more of your gross income is available for mortgage payments. On a $150,000 salary, you keep roughly $5,000-$10,000 more per year compared to states with 5-7% income tax rates. Combined with South Dakota's 1.22% property tax rate, total housing costs remain competitive.
What is the conforming loan limit in South Dakota?
The 2026 conforming loan limit in South Dakota is $806,500. Loans above this amount are considered jumbo loans and typically carry higher interest rates (0.25-0.5% premium), require larger down payments (10-20%), and have stricter qualification requirements including higher credit scores (700+) and lower debt-to-income ratios.
This calculator is for educational purposes. Tax rates and insurance costs are based on South Dakota state averages and may not reflect your specific county, school district, or municipality. Consult a financial professional for advice specific to your situation.