Updated October 4, 2026. Quick answer: No. The Department of Revenue says “South Dakota is one of seven states that” does not impose a state income tax, so there is no state return line for military retired pay.
How South Dakota treats military retired pay
| Item | What the documents say |
|---|---|
| Treatment | South Dakota does not impose a state income tax |
| Not named | The page does not mention military retired pay |
| Not checked | The state constitution or statute text was not retrieved, and the page is undated |
A $30,000 example
A retiree with $30,000 of military retired pay owes no South Dakota income tax on it, because the state has no income tax to apply.
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What changes in 2026
No 2026 change is printed in the documents read.
Federal rules
The state’s treatment sits on top of the federal one. The IRS explains the federal side in Publication 3, Armed Forces’ Tax Guide.
Related: whether South Dakota taxes pensions, how South Dakota taxes retirement income, military retirement pay by state, and the military retirement calculator.
Sources
- Taxes (Individuals): https://dor.sd.gov/individuals/taxes/
Sources: the primary documents linked above, read on October 4, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the plan administrator or the agency itself is the right place to confirm anything consequential.