Updated October 7, 2026. Quick answer: No. South Dakota has no inheritance tax for a death in 2026. The Department of Revenue says “South Dakota does not have an inheritance tax.”
South Dakota inheritance tax at a glance
| Item | What the documents say |
|---|---|
| State inheritance tax | None |
| What the documents say | The Department of Revenue says voters repealed the South Dakota inheritance tax effective July 1, 2001, and the codified chapter is marked repealed |
| State estate tax | None: the Department of Revenue says South Dakota has no estate tax |
| Source | South Dakota Department of Revenue; South Dakota Legislative Research Council; IRS Revenue Procedure 2025-32 |
What the South Dakota documents say
The Department of Revenue’s page on inheritance and estate taxes says “South Dakota does not have an inheritance tax.” It says the voters “repealed the state inheritance tax effective July 1, 2001”.
The Legislative Research Council’s codified laws show Chapter 10-40 headed “IMPOSITION AND AMOUNT OF INHERITANCE TAX [REPEALED]”.
What an heir in South Dakota still faces
The federal estate tax is paid by the estate, with a 2026 basic exclusion amount of “$15,000,000 for calendar year 2026”. South Dakota has no estate tax either: the Department of Revenue says “There is also no estate tax.”. CMG’s South Dakota estate tax page covers it.
An heir’s basis under 26 U.S.C. 1014(a) is generally the value at “the date of the decedent’s death”. Inherited retirement money is an income tax question: see South Dakota 401(k) and IRA withdrawals and the inherited IRA RMD calculator.
How current the South Dakota documents are
Read on October 7, 2026: Individual Taxes (Inheritance and Estate Taxes) (South Dakota Department of Revenue, dated 2026); SDLRC Codified Law 10-40 Imposition and Amount of Inheritance Tax [Repealed] (South Dakota Legislative Research Council, dated 2026).
Common mistakes
- Looking for a South Dakota inheritance tax release; the Department says voters repealed the tax effective July 1, 2001.
Related: inheritance tax by state, South Dakota estate tax, South Dakota probate cost, and how South Dakota taxes 401(k) and IRA withdrawals.
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Answer againSources
- Individual Taxes (Inheritance and Estate Taxes): https://dor.sd.gov/individuals/taxes/
- SDLRC Codified Law 10-40 Imposition and Amount of Inheritance Tax [Repealed]: https://sdlegislature.gov/api/Statutes/10-40.html
- Revenue Procedure 2025-32 (Internal Revenue Service): https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
- 26 U.S.C. 1014 Basis of property acquired from a decedent (U.S. Code, 2023 edition, GovInfo): https://www.govinfo.gov/content/pkg/USCODE-2023-title26/html/USCODE-2023-title26-subtitleA-chap1-subchapO-partII-sec1014.htm
General information, not tax advice; the state agency or a tax professional can confirm anything consequential. Documents read October 7, 2026.