Buying a home in South Dakota: the help you may qualify for.
Down payment assistance, property tax exemptions and veteran benefits in South Dakota, gathered from official state sources and explained in plain English. Every program has its own rules, so check with the agency before you count on it.
Down payment and closing cost help
From the South Dakota Housing.
First-Time Homebuyer down payment assistance
3% or 5% of the first mortgage
A 0% second mortgage for down payment and closing costs, with a South Dakota Housing first mortgage.
Give Me Five
5% of the mortgage
A new, temporary forgivable program for first-time buyers (launched October 2026).
Temporary; ask a lender if funds remain.
Who qualifies: Income and price limits, through a South Dakota Housing participating lender.
Property tax exemptions and credits
Exemptions lower your home’s taxable value or your bill. Most aren’t automatic: you apply with your county director of equalization. South Dakota’s official exemptions information.
For homeowners who live in the home
Owner-occupied classification
A lower school tax levy on your home
Homes lived in by their owners are taxed at a lower school levy than other property.
How to apply: With your county director of equalization, by March 15. (South Dakota Department of Revenue)
For homeowners 65 and older
Assessment freeze (elderly and disabled)
Freezes your home's value
For homeowners 65 or older or disabled, with 2026 income up to $56,595 (single) or $66,885 (household), on homes valued up to $514,500.
How to apply: With your county treasurer, by April 1. (South Dakota Department of Revenue)
For veterans
Disabled veteran exemption
A large part of the home's value is exempt
For veterans rated permanently and totally disabled from service, and unremarried surviving spouses. Ask your county for the current amount.
How to apply: With your county director of equalization. (South Dakota Department of Revenue)
Want to see which ones fit you? Answer a few questions in the property tax exemptions checker.
If you serve or served
- VA home loan: available in every state, often with no down payment and no monthly mortgage insurance. You’ll need a Certificate of Eligibility. See VA home loans.
- Property tax: veterans in South Dakota may qualify for Disabled veteran exemption. See the details above.
Your next steps
- Work out a monthly cost you’re comfortable with in the home cost calculator. It also lists South Dakota’s programs with the loans you may qualify for.
- Talk with a free or low-cost HUD-approved housing counselor. Find one near you.
- Ask each lender which of these programs they work with, and compare Loan Estimates from at least three.
- Follow the step-by-step home buyer’s guide from budget to keys.
Common questions
Does South Dakota have down payment help for home buyers?
Yes. Programs from South Dakota Housing include First-Time Homebuyer down payment assistance, Give Me Five. Income and price limits, through a South Dakota Housing participating lender. Funding and rules change often, so check with the agency or a participating lender.
Does South Dakota have a homestead or property tax exemption for homeowners?
Yes. Homeowners who live in the home may qualify for: Owner-occupied classification. Apply with your county director of equalization; most exemptions aren't automatic.
Is there help for veterans buying a home in South Dakota?
VA home loans are available in every state, often with no down payment. Veterans may also qualify for property tax benefits such as Disabled veteran exemption.
Sources: South Dakota Housing and South Dakota’s property tax office, linked above. Last checked November 12, 2026. Programs, amounts, income limits and funding change often, sometimes every year. Know Before You Own doesn’t recommend lenders or take referral fees. This page is general education, not legal, tax or lending advice. See other states.