If you’re living in South Dakota and you’re retired, then you need to know how state taxes impact you. This holds especially true for individuals on a fixed income with less than ideal retirement savings.
Today, I’m going to share six important facts about the taxes in South Dakota that might impact you as a citizen. I should also mention that this article is particularly important for retirees who are still working but are also retired. Actually, whether your cash is flowing and your gold IRA is flourishing, or if you’re not in a good financial position, you need to know this regardless.
Important Tax Facts For South Dakota Retirees
Personal Income Tax – Assuming you’re retired and still working, you will be subject to state taxes. The good news is that South Dakota does not have a personal income tax. So you will not be subject to standard deductions, nor will you have any personal exemptions since state income tax doesn’t exist in the state.
Sales Tax – Retired or not, you’ll be subject to paying the standard state sales tax that South Dakota has which is 4.0% today. But there’s more. You will also be responsible for paying a local sales tax which is on average about 1.8%. There are taxes on things like cigarettes ($1.53 per pack) and gasoline $0.404 per gallon that you’ll be subject to pay regardless of your retired status.
Estate Tax – The good news for folks living in South Dakota is that there is no estate or inheritance tax that you need to pay.
Taxes For Military Retirees – The maximum tax rate for retired military personnel is 0.00% because there is no income tax at the state level.
Retiree Taxes – Living in South Dakota means that you do not have to pay any individual taxes on your Social Security income. You will also not be subject to a state tax of your Social Security income. Additionally, there is no individual tax or state tax for your pension income.
Conclusion: Taxes Aren’t Bad For Retirees In South Dakota
If you’re planning on retiring in South Dakota, then you might be making a pretty good choice if avoiding taxes is a part of your plan. It seems that the state and individual tax implications are pretty minimal here for retired residents.
If you’re looking for more information, then I suggest checking out the official state website for more information, or feel free to visit their office. You’ll find the address listed below:
South Dakota Department of Revenue
445 E. Capitol Ave.
Pierre, SD 57501