South Dakota Real Estate Transfer Tax

Figures verified November 12, 2026 against SDCL 43-4-21 · Update log

Short answer

South Dakota's real estate transfer fee is $0.50 per $500 (0.1%). The seller (the grantor) pays it to the register of deeds. On a $500,000 home, it comes to about $500. An executor's deed handing an inherited house to an heir owes none.

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South Dakota transfer tax calculator

Enter the sale price to see each tax, who pays it, and the total. Amounts like 650k or 2.5m work.

Sale price

Property

South Dakota

Transfer tax: $500 (0.1% of the price)

South Dakota transfer feeSeller$500

Seller pays: $500
Buyer pays: $0

Giving the house to an heir instead of selling it? The executor's deed to an heir is exempt here. How it works in South Dakota

An estimate from the rates on our South Dakota page. The title company or closing attorney works out the final figure; recording fees and the agent's commission aren't included.

South Dakota transfer tax rates

Tax	Rate	Who pays
South Dakota transfer fee	$0.50 per $500 (0.1%)	Seller

Who pays the transfer tax in South Dakota?

The seller (the grantor) pays it to the register of deeds.

Whatever the custom, the purchase contract can shift the tax to the other side, so check it before you agree a price. The closing agent collects the tax from the sale money and pays it when the deed is recorded.

Selling an inherited house in South Dakota

An inherited house reaches the heirs in one of three ways, and the transfer tax depends on which:

The executor deeds the house to the heirs. Decrees of distribution and deeds carrying them out in a decedent's estate are exempt (SDCL 43-4-22).
The house passes outside probate, to a surviving joint owner or under a transfer-on-death deed. There is no sale and no new deed from the estate, so no transfer tax; the new owner records a death certificate or affidavit.
The executor sells the house. When the executor sells the house to an outside buyer, the transfer tax is due as on any sale. The estate pays the seller's share out of the sale proceeds, and the closing agent usually collects it.

The heirs or the estate also owe income tax only on any rise in value after the death, because the house gets a stepped-up basis. The seller's transfer tax counts as a selling expense and lowers that gain. See what's left for each heir in the inherited house net proceeds calculator.

Do it yourself, correctly

The Executor's Final Tax Returns Kit

An estate pays 37% on income above $16,000. Paid out to the heirs on time, the same income is taxed at their rates, often 12%. The kit shows how, and is $49.

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Transfer taxes in other states

Alabama · Alaska · Arizona · Arkansas · California · Colorado · Connecticut · Delaware · District of Columbia · Florida · Georgia · Hawaii · Idaho · Illinois · Indiana · Iowa · Kansas · Kentucky · Louisiana · Maine · Maryland · Massachusetts · Michigan · Minnesota · Mississippi · Missouri · Montana · Nebraska · Nevada · New Hampshire · New Jersey · New Mexico · New York · North Carolina · North Dakota · Ohio · Oklahoma · Oregon · Pennsylvania · Rhode Island · South Carolina · Tennessee · Texas · Utah · Vermont · Virginia · Washington · West Virginia · Wisconsin · Wyoming

Or compare them all in the 50-state table.

Frequently asked questions

How much is the transfer tax in South Dakota?

Real estate transfer fee: $0.50 per $500 (0.1%). On a $500,000 home, that comes to about $500 in total.

Who pays the transfer tax in South Dakota, the buyer or the seller?

The seller (the grantor) pays it to the register of deeds.

Do you pay transfer tax when you inherit a house in South Dakota?

Decrees of distribution and deeds carrying them out in a decedent's estate are exempt (SDCL 43-4-22).

Does an estate pay transfer tax when it sells a house in South Dakota?

When the executor sells the house to an outside buyer, the transfer tax is due as on any sale. The estate pays the seller's share out of the sale proceeds, and the closing agent usually collects it.

Is transfer tax deductible?

Not as a tax deduction, but the seller's share counts as a selling expense: it lowers the amount realized, and so the taxable gain on the sale. The buyer's share is added to the buyer's cost basis.

Sources

This information is provided for educational purposes only and should not be considered legal or tax advice. Consult a qualified tax professional for guidance specific to your situation.