A new national report from WalletHub shows South Dakota landing near the middle of the pack when it comes to property tax burdens, offering residents lower costs than many states but still higher than much of the Mountain West.
WalletHub’s 2026 comparison of all 50 states and the District of Columbia found that while some states charge “an arm and a leg” in property taxes, South Dakota sits far from the top of that list. The study examined effective real‑estate tax rates, taxes paid on a typical home, and median home values nationwide.
According to the report, South Dakota’s effective property tax rate comes in at 1.14%, placing the state well below high‑tax states like New Jersey and Illinois but above low‑tax states such as Hawaii, Alabama, and Colorado. By comparison, a homeowner in Hawaii—the lowest‑taxed state—pays taxes equivalent to just 0.27% of their home’s value.
While WalletHub’s ranking highlights South Dakota’s moderate position nationally, separate data from World Population Review shows that the median property tax bill in the state is about $2,590 per year, reflecting both the state’s lower home prices and stable local tax structure.
South Dakota remains competitive for homeowners seeking affordability, particularly compared with the Midwest and Northeast, where annual tax bills regularly reach $6,000 to $10,000. But the state still relies heavily on property taxes to fund public schools, county governments, and essential services—meaning local rates can vary widely by county.
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