Partial Tax Comparison from Retirement Living - Texas & South Dakota: http://www.retirementliving.com/RLtaxes.html
TEXAS
Sales Taxes
State Sales Tax: 6.25% (food, prescription and non-prescription drugs exempt); local option taxes can raise the rate to 8.25%.
Gasoline Tax: 20 cents/gallon
Diesel Fuel Tax: 20 cents/gallon
Cigarette Tax: $1.41 cents/pack of 20
Personal Income Taxes
No state personal income tax
Retirement Income: Not taxed.
Property Taxes
Property tax is imposed by local taxing units. For homeowners 65 and older, $10,000 (in addition to the regular $15,000 homestead exemption) of the property's assessed value is exempt from school taxes and $3,000 is exempt from other local taxes. Once an over-65 homeowner qualifies for an over-65 homestead exemption for school taxes, that owner gets a tax ceiling for that home on school taxes. If the homeowner improves the home (other than normal repairs or maintenance), the tax ceiling is adjusted for the new additions. School district taxes are frozen for seniors (65 and older) and disabled persons at the level imposed on the residence the first year that the taxpayer qualified for the residence exemption. Counties, cities, towns, and junior college districts are permitted to establish a tax freeze on homesteads of those age 65 and older or disabled. For more information on exemptions, click here.
Inheritance and Estate Taxes
There is no inheritance and the estate tax is limited and related to federal estate tax collection.
For further information, visit the Texas Comptroller of Public Accounts site or call the appropriate office using telephone numbers found on the site..
SOUTH DAKOTA
Sales Taxes
State Sales Tax: 4% (prescription drugs exempt); municipalities may add up to an additional 2%. Residents who are age 65 and older and have a yearly income of under $9,750 (single) or in a household where the total income was under $12,750 are eligible for a sales tax refund.
Gasoline Tax: :* 24 cents/gallon
Diesel Fuel Tax: * 24 cents/gallon
Cigarette Tax: $1.53 cents/pack of 20
Personal Income Taxes
No state personal income tax
Retirement Income: Not taxed.
Property Taxes
Property is assessed at 85% of market value between counties. Assessors determine the market value of property by using a combination of the following three approaches: (1) Cost approach whereby the assessor estimates the cost of replacing the property (structures), reduces that amount by its age (depreciation) and adds the value of the land. (2) Market approach whereby the assessor compares the subject property to like properties that have recently been sold. (3) Income approach in whereby the assessor uses the value of the projected income from a property to determine its value.
Property taxes are assessed and collected by local government entities. A tax freeze and/or municipal property tax reduction is available for seniors age 65 and older, and disabled persons. Single homeowners 66 and older who earn $10,000 or less can get a refund of up to 35% of taxes paid. Multi-person households headed by someone 66 and older, where the combined income is $13,000 or less, are eligible for a refund of up to 55% of taxes paid. The state has several other property tax relief programs. For details, click here.
There is a property tax exemption for disabled veterans. Veterans that have been rated as permanently and totally disabled as the result of a service connected disability may be eligible for up to $100,000 of their property value to be exempt from property taxes. Click here for details.
The state has a property tax homestead exemption that delays payment of property taxes until the property is sold. Taxes are a lien on the property and must be paid along with interest before the property can be transferred.
For more information on all property taxes, call 800-829-9188.
Inheritance and Estate Taxes
There is no inheritance tax and the estate tax is limited and related to federal estate tax collection.
For further information, visit the South Dakota Department of Revenue site or call 800-829-9188.
* Tax rates to do not include local option tax of 1 cent.