← South Carolina | Full Rankings | Tennessee →
Part of the G.I. Jobs 50 States of Opportunity for Veterans series.
Using the Military Friendly® States Tool, this series explores what makes each state unique and why it may—or may not—be the right place to begin your next mission.
South Dakota at a Glance
Veteran Population: 53,890 Veterans, according to the U.S. Census Bureau’s 2020–2024 estimates.
Veteran Employment: The Bureau of Labor Statistics estimated about 56,000 South Dakota Veterans age 18+ in 2025, with approximately 29,000 employed and a Veteran unemployment rate of 2.1%.
State Unemployment: 2.0% in July 2026—the lowest unemployment rate of any state.
Housing: The Census Bureau’s 2020–2024 median owner-occupied home value was $257,400. Redfin reported a statewide median sale price of $344,261 in July 2026.
Rent: Median gross rent was $946.
Median Household Income: $75,081.
Taxes: South Dakota has no individual state income tax, which means military retirement, wages and most other individual income are not subject to a South Dakota state income tax.
Military Connection: Ellsworth Air Force Base outside Rapid City is preparing to become the first operational B-21 Raider base and home of the B-21 Formal Training Unit.
Major Career Fields: Defense, aviation, healthcare, financial services, manufacturing, agriculture, construction, logistics and government.
Best For: Veterans who want low unemployment, no individual state income tax, strong military-connected careers, attainable housing by national standards and an outdoor lifestyle—and who are not personally offended by winter.
The Short Version
South Dakota is one of the easiest states in this series to underestimate.
It is small.
It is rural.
It does not have multiple giant military installations.
And unless you served at Ellsworth or took a family trip to Mount Rushmore, there is a decent chance you have never seriously considered moving there.
You probably should at least run the numbers.
South Dakota had the lowest unemployment rate in the country in July 2026 at 2.0%.
Veteran unemployment was estimated at 2.1% in 2025.
The state has no individual income tax.
The statewide median home sale price was $344,261 in July 2026—about $63,000 below the national median.
Ellsworth Air Force Base is undergoing a historic transformation as the Air Force prepares it to become the first operational home of the B-21 Raider.
The Rapid City area therefore has a growing aerospace, defense, construction and technical economy.
On the other side of the state, Sioux Falls has built a much broader civilian employment market around healthcare, financial services, manufacturing, logistics and professional services.
That gives Veterans two very different major relocation markets.
Rapid City if military, defense and Black Hills living appeal to you.
Sioux Falls if you want the largest civilian job market in the state.
There are drawbacks.
Winter is real.
Distance is real.
Professional opportunities become thinner quickly outside the major regional centers.
And Rapid City housing has become more expensive than many people expect from South Dakota.
But for Veterans who want jobs, relatively manageable housing, low taxes and room to breathe, South Dakota is a serious contender.
Table of Contents
- Veteran Snapshot
- Why Veterans Choose South Dakota
- South Dakota by the Numbers
- Employment Outlook for Veterans
- If Your MOS Was…
- Education Opportunities
- Veteran Benefits in South Dakota
- Healthcare & VA Resources
- Best Cities for Veterans
- Cost of Living
- Outdoor Recreation & Veteran Lifestyle
- Veteran Reality Check
- 3 Things Veterans Should Know Before Moving to South Dakota
- Pros & Cons
- Is South Dakota Right for You?
- Frequently Asked Questions
Veteran Snapshot
South Dakota’s military footprint has one dominant anchor:
Ellsworth Air Force Base.
Located just outside Rapid City near Box Elder, Ellsworth is home to the 28th Bomb Wing.
For decades, the base has been associated with long-range bomber operations.
Now it is moving into an entirely new era.
Ellsworth has been selected as the first main operating base for the B-21 Raider, the Air Force’s next-generation stealth bomber.
It will also host the B-21 Formal Training Unit.
That makes Ellsworth one of the most important Air Force modernization sites in the country.
And the transformation is already happening.
The Air Force is undertaking an estimated $2 billion construction program to prepare the installation for the new aircraft.
In summer 2026, Ellsworth formally accepted its first two B-21-specific facilities:
• A $161 million Low Observable Restoration Facility
• An $81 million Wash Rack and General Maintenance Hangar
Those buildings are only part of a much broader buildout.
The base must create the infrastructure needed to:
• Maintain B-21 aircraft
• Train crews
• Support low-observable technologies
• Secure advanced systems
• Expand operations
• House personnel
• Support logistics
• Maintain facilities
• Protect the installation
That has implications far beyond active-duty Airmen.
Veterans should expect opportunity involving:
• Aircraft maintenance
• Aerospace support
• Engineering
• Construction
• Cybersecurity
• Security
• Communications
• Logistics
• Facilities
• Program management
• Government contracting
• Supply chain
The transformation also strengthens Rapid City’s civilian economy.
More personnel means more housing.
More contractors.
More construction.
More healthcare demand.
More services.
More technical employment.
South Dakota does not have several large installations scattered around the state.
It does have one base undergoing one of the most consequential military transformations in America.
For the right Veteran, that is enough to matter enormously.
Why Veterans Choose South Dakota
South Dakota’s broader Veteran case has less to do with military infrastructure and more to do with economics.
The state has jobs.
Lots of them relative to the available workforce.
South Dakota’s July 2026 unemployment rate was just 2.0%.
That was the lowest rate of any state in the country.
The number matters because it tells you something important:
Employers need workers.
For transitioning Veterans, that can create leverage.
Veterans with technical experience, healthcare backgrounds, mechanical skills, transportation experience or leadership credentials may find employers more willing to look beyond traditional civilian resumes.
South Dakota also has no individual state income tax.
That means there is no South Dakota personal income tax on:
• Military retirement
• Civilian wages
• Federal retirement
• Private pensions
• Most other individual income
That simplifies the retirement question considerably.
You do not need a special military-retirement deduction.
There is no individual state income tax to deduct it from.
Housing remains relatively attainable too.
The statewide median sale price was $344,261 in July 2026.
That is not cheap in the way South Dakota once was.
It is still below the national median.
And the Census Bureau’s 2020–2024 median gross rent was only $946.
Then there is the lifestyle.
South Dakota has extremely low population density.
The Census Bureau puts it at roughly 12 people per square mile.
Traffic is generally not a defining feature of life here.
Parking is rarely a tactical operation.
And outside Sioux Falls and Rapid City, open space arrives quickly.
Veterans who spent years dealing with crowded installations, long commutes or expensive coastal metros may find that appealing.
South Dakota May Be a Great Fit If You…
✓ Want an exceptionally strong labor market
✓ Want no individual state income tax
✓ Receive military retirement
✓ Have Air Force, aviation or bomber experience
✓ Work in maintenance, engineering or technical operations
✓ Want healthcare or financial-services careers
✓ Want home prices below the national median
✓ Prefer smaller cities
✓ Hunt, fish or spend serious time outdoors
✓ Want mountains and military careers around Rapid City
✓ Prefer less congestion and more space
You May Want to Think Twice If You…
✕ Hate cold winters
✕ Need a huge professional or technology market
✕ Want easy access to several major metropolitan areas
✕ Need frequent highly specialized healthcare but want to live remotely
✕ Want warm-weather outdoor recreation year-round
✕ Think all South Dakota housing is still extremely cheap
South Dakota by the Numbers
| Metric | South Dakota |
|---|---|
| Veterans, 2020–2024 | 53,890 |
| Veteran population estimate, 2025 BLS | 56,000 |
| Veterans employed, 2025 | 29,000 |
| Veteran unemployment, 2025 | 2.1% |
| State unemployment, July 2026 | 2.0% |
| Median household income | $75,081 |
| Median owner-occupied home value | $257,400 |
| Current median sale price, July 2026 | $344,261 |
| Median gross rent | $946 |
| Owner-occupied housing rate | 68.6% |
| Veteran-owned employer firms | 1,522 |
| Mean commute | 17.8 minutes |
The numbers show why South Dakota belongs in the conversation.
The July 2026 unemployment rate of 2.0% was the lowest in the United States.
The national rate was 4.1%.
South Dakota’s rate was less than half that.
Veterans were doing well too.
BLS estimated that 56,000 Veterans age 18+ lived in South Dakota’s civilian noninstitutional population in 2025.
About 30,000 were in the labor force.
About 29,000 were employed.
The estimated Veteran unemployment rate was 2.1%.
Those 2025 Veteran estimates are based on an 11-month annual average because October data were not collected during the federal government shutdown, so they are not perfectly comparable with prior years.
Still, the broad signal is clear.
This is a tight labor market.
Housing gives South Dakota another advantage.
The July 2026 statewide median sale price was $344,261.
That was up 2.8% from the previous year.
The national median was $407,730.
So South Dakota remained roughly $63,000 below the national median.
That does not mean every city is cheap.
Rapid City is a particularly important exception.
But statewide, Veterans still have a better shot at homeownership here than in many states.
Employment Outlook for Veterans
South Dakota’s employment market is smaller than most.
That does not mean it is weak.
The state has one of the tightest labor markets in America.
The key is understanding where the jobs actually are.
Defense & Aerospace
Rapid City and Ellsworth dominate South Dakota’s defense economy.
The B-21 transition creates an especially important opportunity.
Ellsworth is not simply adding another aircraft.
It is becoming the first operational home of an entirely new bomber platform.
That will support work involving:
• Aircraft maintenance
• Low-observable maintenance
• Aviation operations
• Engineering
• Cybersecurity
• Communications
• Security
• Logistics
• Facilities
• Construction
• Program management
• Training
• Supply
• Contracting
Veterans with B-1 experience may have especially obvious crossover.
But the opportunities extend much further.
Civil engineering Veterans can support infrastructure.
Security Forces Veterans can work in installation and contractor security.
Cyber Veterans can support advanced networks.
Logisticians can manage supply chains.
Maintainers understand technical systems.
Senior leaders can move into program and operations management.
This may be South Dakota’s most important Veteran career story over the next decade.
Healthcare
Healthcare is a major employer across South Dakota.
Sioux Falls is the primary healthcare hub.
Large regional systems there serve patients across South Dakota, Minnesota, Iowa and Nebraska.
Veterans can pursue:
• Clinical careers
• Nursing
• Emergency medicine
• Medical administration
• Facilities
• Supply chain
• Cybersecurity
• IT
• Security
• Operations
• Project management
Rapid City also has a substantial healthcare economy.
And because South Dakota has large rural areas, healthcare workers are needed well beyond the two largest cities.
The Veterans themselves are part of that workforce need.
Financial Services
Sioux Falls has an unusually large financial-services economy for a city its size.
South Dakota’s banking laws helped turn the region into a major hub for:
• Banking
• Credit cards
• Financial operations
• Insurance
• Trust services
• Compliance
• Risk
• Technology
• Fraud investigation
Veterans with backgrounds in:
• Intelligence
• Cybersecurity
• Financial management
• Investigations
• Risk assessment
• IT
• Operations
may find more opportunity here than they expect.
Do not assume banking only hires finance majors.
Modern financial institutions need people who understand security, systems, compliance and risk.
That can sound suspiciously familiar to a Veteran.
Manufacturing
Manufacturing employed nearly 44,000 South Dakotans in July 2026.
Industries include:
• Machinery
• Food production
• Metal fabrication
• Electronics
• Agricultural equipment
• Medical products
• Industrial equipment
Veterans with maintenance, mechanical, welding, production and leadership experience can transition well.
South Dakota employers also face persistent workforce constraints.
A Veteran who can troubleshoot equipment, lead a shift and show up reliably already brings a valuable package.
Agriculture & Agribusiness
Agriculture remains fundamental to South Dakota.
But modern agriculture is not simply tractors and cattle.
The broader sector includes:
• Food processing
• Precision agriculture
• Equipment manufacturing
• Logistics
• Agricultural technology
• Grain operations
• Livestock
• Biofuels
• Agricultural finance
Veterans with technical, mechanical, transportation and logistics experience may fit into agribusiness without ever becoming farmers.
Construction
Construction employment continued to grow in 2026.
Ellsworth’s B-21 buildout is one major contributor to western South Dakota demand.
Sioux Falls also continues to grow.
Construction careers include:
• Project management
• Electrical
• HVAC
• Heavy equipment
• Civil construction
• Carpentry
• Safety
• Facilities
• Infrastructure
Veterans from Seabee, engineering, maintenance and construction MOS backgrounds should pay attention.
Government
Pierre is South Dakota’s state-government center.
Veterans can pursue careers involving:
• Administration
• Public safety
• Transportation
• IT
• Emergency management
• Finance
• Program management
• Environmental services
State government can provide stability, but Pierre is a small market.
Veterans who do not already have a clear government opportunity may find Sioux Falls or Rapid City easier places to build a broader career.
Veteran Employment Support
South Dakota’s Department of Labor and Regulation provides workforce services around the state.
Veterans may receive priority of service for qualifying employment and training programs.
Veterans should also compare Military Friendly® employers operating in South Dakota.
Ready to Translate Your Military Experience?
South Dakota’s tight labor market gives Veterans an advantage if they can clearly explain what they know how to do. Maintenance can become manufacturing. Security can become risk or investigations. Logistics can become distribution. Aviation can become B-21 support.
If Your MOS Was…
Your military experience doesn’t disappear when you leave the military—it translates.
| Military Background | Civilian Opportunities in South Dakota |
|---|---|
| Aircraft Maintenance / Aviation | Ellsworth Support, Aerospace Maintenance, B-21 Operations, Quality |
| Cyber / Communications | Defense Cybersecurity, Banking IT, Healthcare IT, Network Operations |
| Intelligence | Financial Risk, Fraud, Defense Analysis, Corporate Security |
| Logistics & Supply | Distribution, Agricultural Supply Chain, Defense Logistics, Procurement |
| Mechanics / Maintenance | Manufacturing, Agricultural Equipment, Industrial Maintenance, Field Service |
| Engineering | B-21 Infrastructure, Construction, Utilities, Manufacturing, Civil Engineering |
| Medical | Healthcare, Emergency Services, Clinical Operations, Rural Health |
| Security Forces / Military Police | Installation Security, Law Enforcement, Banking Investigations, Emergency Management |
| Transportation | Trucking, Fleet Operations, Agricultural Logistics, Distribution |
| Leadership / Command | Operations Management, Manufacturing Leadership, Program Management, Government |
South Dakota is a good state for Veterans who are comfortable translating skills broadly.
A Security Forces Veteran could go to Ellsworth.
Or law enforcement.
Or corporate security.
Or financial fraud and investigations.
A mechanic might maintain military aircraft.
Or manufacturing equipment.
Or agricultural machinery.
A logistician can move into defense supply, food distribution or transportation.
An intelligence Veteran can use analytical skills in banking risk or cybersecurity.
The civilian industry may look completely different.
The underlying job often does not.
If one credential could make that transition faster, explore certifications Veterans can earn in under six months.
Education Opportunities
South Dakota’s education system includes public universities and technical colleges that align well with the state’s economy.
Major institutions include:
• South Dakota State University
• University of South Dakota
• South Dakota Mines
• Dakota State University
• Black Hills State University
• Northern State University
• Lake Area Technical College
• Mitchell Technical College
• Southeast Technical College
• Western Dakota Technical College
South Dakota Mines
South Dakota Mines in Rapid City deserves special attention from technical Veterans.
Its programs focus heavily on:
• Engineering
• Science
• Technology
• Mining
• Computer science
• Applied technical fields
Its proximity to Ellsworth and western South Dakota’s growing technical economy makes it especially relevant for Veterans targeting aerospace, engineering or infrastructure work.
Dakota State University
Dakota State has become particularly well known for:
• Cybersecurity
• Computer science
• Information systems
• Technology
Veterans transitioning from cyber, communications, intelligence or information-technology roles should put it on the research list.
South Dakota State University
SDSU in Brookings is the state’s largest university.
Programs align well with South Dakota’s major industries, including:
• Agriculture
• Engineering
• Nursing
• Pharmacy
• Business
• Technology
• Education
University of South Dakota
USD in Vermillion offers programs in:
• Business
• Healthcare
• Law
• Education
• Government
• Liberal arts
Its health-sciences programs connect particularly well with South Dakota’s growing healthcare demand.
Free Tuition for Certain Veterans
South Dakota provides a meaningful state education benefit for certain Veterans.
Qualifying Veterans may attend undergraduate courses at state-supported universities or technical colleges without paying tuition if they are not eligible for educational payments under the GI Bill or another federal education program.
To qualify, Veterans generally must:
• Have an honorable discharge
• Be a current South Dakota resident
• Qualify for in-state tuition
• Meet South Dakota’s statutory definition of Veteran
Eligible Veterans can receive one month of tuition for each month of qualifying service, up to a maximum of four academic years.
The federal-benefit restriction matters.
This program is not simply “every Veteran gets four free years.”
But for Veterans who have exhausted, transferred or do not qualify for certain federal education benefits, it can be extremely useful.
Veterans should also compare Military Friendly® schools and ask:
• How much military credit transfers?
• Does the school understand JST or CCAF transcripts?
• Are there direct employer relationships?
• Does the school connect Veterans with Ellsworth or regional employers?
• How quickly does it certify GI Bill enrollment?
• Is a degree actually necessary for the target career?
Thinking About Going Back to School?
South Dakota has strong technical programs in cyber, engineering, healthcare and skilled trades. Before spending four years earning another degree, check whether a targeted credential gets you into the same job faster.
Veteran Benefits in South Dakota
South Dakota’s Veteran-benefit package becomes especially attractive when combined with the state’s broader tax structure.
No Individual State Income Tax
South Dakota does not impose an individual state income tax.
That means there is no South Dakota personal income tax on qualifying:
• Military retirement
• Civilian wages
• Private retirement income
• Federal retirement income
For career military retirees, this makes South Dakota particularly easy to compare.
There is no special military-retirement exclusion because there is no individual income tax in the first place.
Disabled Veteran Property Tax Exemption
South Dakota offers a significant property-tax exemption to qualifying permanently and totally disabled Veterans.
The program exempts up to $200,000 of the assessed value of an eligible owner-occupied property.
To qualify:
• The Veteran must own and occupy the property
• The Veteran must be rated permanently and totally disabled because of a service-connected disability
Certain unremarried surviving spouses may also qualify.
This does not necessarily eliminate the entire property-tax bill.
It removes up to $200,000 in assessed value from taxation.
That distinction matters.
On a moderately priced South Dakota home, however, the benefit can still be substantial.
Paraplegic Veteran Property Tax Exemption
South Dakota has a separate property-tax benefit for qualifying paraplegic Veterans and certain Veterans who have lost or lost the use of both lower extremities.
Qualifying specially designed wheelchair-accessible property can be fully exempt from property taxation.
The Veteran must meet current ownership, occupancy and property requirements.
Certain unremarried surviving spouses can continue the benefit.
State Veterans Home
South Dakota operates the Michael J. Fitzmaurice State Veterans Home in Hot Springs.
The facility provides long-term care for qualifying Veterans and eligible spouses, widows and widowers.
Services include:
• 24-hour nursing
• Primary care
• Pharmacy
• Physical therapy
• Occupational therapy
• Speech therapy
• Social services
• Transportation
• Veteran-benefit assistance
Hot Springs is also part of the Black Hills Veteran healthcare ecosystem.
State Veterans Cemetery
The South Dakota Veterans Cemetery is located in Sioux Falls.
It opened for burials in 2021 and is the state’s first federally funded, state-owned Veterans cemetery.
Eligible Veterans receive burial at no cost.
The benefit includes:
• Gravesite or columbarium niche
• Grave liner
• Headstone or niche cover
• Perpetual care
Eligible spouses and dependents may also be buried there for a fee.
Lifetime State Park Entrance License
South Dakota resident Veterans rated 100% total and permanently disabled—or qualifying recipients of a VA “K” award—can receive a lifetime state park entrance license.
Approved Veterans also receive a 50% discount on camping fees.
This is a genuinely useful benefit in a state where outdoor recreation is one of the main reasons to live there.
Disabled Veteran Hunting & Fishing
South Dakota offers a reduced-fee hunting and fishing card to certain qualifying disabled Veterans.
Eligibility can include Veterans with qualifying service-connected disabilities under current state rules.
The card functions similarly to a resident fishing and small-game license.
Veterans should check current South Dakota Game, Fish and Parks requirements before applying because different disability categories have different documentation requirements.
Use the Military Friendly® States Tool to compare South Dakota’s benefits with other states.
Healthcare & VA Resources
South Dakota’s VA healthcare system has two major geographic anchors:
Sioux Falls in the east.
The Black Hills in the west.
That mirrors the state’s two main Veteran relocation markets surprisingly well.
Sioux Falls
The Sioux Falls VA Health Care System is the major eastern South Dakota VA hub.
The Royal C. Johnson Veterans Memorial Hospital provides:
• Primary care
• Specialty care
• Surgery
• Mental healthcare
• Pharmacy
• Rehabilitation
• Emergency services
The Sioux Falls system also operates outpatient clinics serving communities including:
• Aberdeen
• Watertown
• Wagner
• Dakota Dunes
The health system also reaches into neighboring states.
For Veterans living in Sioux Falls, VA access is excellent.
That adds to an already strong civilian healthcare market.
Black Hills
Western South Dakota Veterans are served by VA Black Hills Health Care System.
Its major facilities include:
Fort Meade VA Medical Center
and
Hot Springs VA Medical Center.
Fort Meade provides primary and specialty healthcare, including:
• Mental healthcare
• PTSD treatment
• Traumatic brain injury services
• Spinal-cord injury services
• Nutrition
• Rehabilitation
The Black Hills system received a five-star CMS Overall Hospital Quality Star Rating in 2026.
That was the highest possible rating.
Rapid City Area
Veterans living in Rapid City can access the Black Hills VA network.
Fort Meade sits near Sturgis, roughly east of Rapid City.
That makes VA access a meaningful strength for Veterans considering Rapid City, Box Elder and the Ellsworth area.
Hot Springs
Hot Springs has an unusually concentrated Veteran-services identity for a town its size.
It includes:
• VA healthcare
• The Michael J. Fitzmaurice State Veterans Home
• A long history of serving Veterans
For Veterans considering retirement in the southern Black Hills, that can be attractive.
Rural South Dakota
This is where the map matters.
South Dakota is enormous geographically and lightly populated.
Veterans living in rural communities may face substantial drives to specialty VA care.
Telehealth and community care can help.
They do not erase distance.
If you need frequent specialty treatment, find the VA facility before finding the acreage.
Best Cities for Veterans
South Dakota is really a two-market state for many transitioning Veterans.
Sioux Falls.
Rapid City.
The rest of the state offers good options—but those two cities provide the broadest employment ecosystems.
| If You Want… | Consider… |
|---|---|
| Largest civilian job market | Sioux Falls |
| Defense / aerospace | Rapid City / Box Elder |
| Ellsworth AFB access | Box Elder / Rapid City |
| Healthcare | Sioux Falls |
| Finance / banking | Sioux Falls |
| Black Hills outdoor lifestyle | Rapid City |
| Engineering / technical education | Rapid City |
| University / agriculture | Brookings |
| State government | Pierre |
| VA + retirement community | Hot Springs |
| Smaller regional employment market | Aberdeen / Watertown |
Rapid City / Box Elder
Rapid City is South Dakota’s military-connected winner.
Ellsworth is only minutes away.
The B-21 transition is transforming the regional economy.
Veterans can pursue careers in:
• Defense
• Aerospace
• Construction
• Engineering
• Healthcare
• Tourism
• Government
• Logistics
• Manufacturing
• Technical services
Box Elder sits directly beside Ellsworth and is growing quickly as the base expands.
Rapid City offers the broader civilian economy.
The Black Hills create the lifestyle advantage.
Veterans can leave work and reach:
• Hiking
• Mountain biking
• Fishing
• Hunting
• Camping
• National forest
without turning the weekend into an expedition.
The drawback?
Housing.
Rapid City is not the South Dakota bargain outsiders often expect.
B-21 growth, tourism, limited inventory and migration have increased demand.
Veterans transferring directly into Ellsworth-related work should run the housing numbers before assuming military-adjacent equals cheap.
Sioux Falls
Sioux Falls is South Dakota’s strongest all-around civilian career market.
It has:
• Healthcare
• Banking
• Insurance
• Technology
• Manufacturing
• Logistics
• Construction
• Professional services
• Government
• Retail
The city also has the state’s primary eastern VA medical center.
For two-career households, Sioux Falls is generally the easiest South Dakota market.
One spouse can work in healthcare.
Another in finance.
Or manufacturing.
Or logistics.
Or technology.
Housing has become more expensive as the city has grown, but the market remains more attainable than many larger metros.
The drawback is that you do not get the Black Hills.
South Dakota is large.
Rapid City is not a casual after-work drive from Sioux Falls.
Brookings
Brookings revolves heavily around South Dakota State University.
The university creates careers in:
• Education
• Research
• Agriculture
• Engineering
• Healthcare
• Administration
• Technology
The community also has manufacturing and agribusiness employers.
Brookings can work particularly well for Veterans pursuing education while transitioning.
Housing demand from the university can make prices higher than the town’s size might suggest.
Pierre
Pierre is the state-government market.
Veterans can target:
• Public administration
• Transportation
• Law enforcement
• IT
• Emergency management
• Natural resources
• Healthcare
The city is small.
Very small for a state capital.
That means the overall professional employment market is limited.
Pierre works best if the job is already there.
Aberdeen
Aberdeen serves as a regional hub for northeastern South Dakota.
Major sectors include:
• Healthcare
• Education
• Manufacturing
• Agriculture
• Government
• Regional services
Northern State University adds higher education.
The Sioux Falls VA system operates an outpatient clinic there.
Housing can be comparatively approachable.
Winter is extremely committed to the assignment.
Watertown
Watertown offers:
• Manufacturing
• Healthcare
• Agriculture
• Logistics
• Regional services
It also has a VA outpatient clinic.
The city’s location along Interstate 29 gives it good transportation access.
Veterans who prefer smaller communities but still need an established employment base may find it worth comparing.
Hot Springs
Hot Springs is a retirement and Veteran-services option more than a major career market.
VA healthcare and the State Veterans Home create a strong Veteran presence.
The southern Black Hills location provides excellent outdoor access.
The civilian job market is small.
Retirees may love it.
Veterans still building careers should have employment secured first.
Cost of Living
South Dakota’s cost-of-living case is strong.
But it is not as simple as “everything is cheap.”
The Census Bureau reports:
Median owner-occupied home value: $257,400
Median monthly owner cost with a mortgage: $1,680
Median gross rent: $946
Current home prices are higher.
Redfin reported a statewide median sale price of $344,261 in July 2026.
That was 2.8% higher than the previous year.
Still, the national median was $407,730.
South Dakota remained significantly below it.
Sioux Falls
Sioux Falls has grown rapidly.
Housing costs have followed.
Veterans should not expect 2015 South Dakota prices.
But compared with major metros elsewhere, the salary-to-housing relationship can still work well.
The bigger advantage is job depth.
Affordable housing is far less useful if there are only three employers in your career field.
Sioux Falls gives Veterans both housing options and a broader employment base.
Rapid City
Rapid City can surprise newcomers.
The Black Hills attract retirees.
Tourism creates demand.
Ellsworth creates demand.
B-21 expansion creates more.
Limited geography and housing supply can push prices higher.
Veterans moving for Ellsworth should compare:
• Rapid City
• Box Elder
• Summerset
• Piedmont
• Sturgis
depending on commute and lifestyle.
Smaller Communities
Housing often becomes much less expensive outside Sioux Falls and Rapid City.
But career options narrow.
Again:
The cheap house only matters if the income works.
No Individual Income Tax
South Dakota’s lack of an individual state income tax is one of its biggest financial strengths.
For working Veterans, that means no state income tax on civilian wages.
For retirees, it means no South Dakota income tax on military retirement.
For a household with two incomes, the difference can become substantial over time.
Sales Taxes
South Dakota relies more heavily on sales and other taxes.
Veterans should compare the complete tax picture rather than treating “no income tax” as “no taxes.”
Property Taxes
Property taxes vary by location.
Qualifying permanently and totally disabled Veterans can exempt up to $200,000 of assessed value from eligible owner-occupied property.
For those Veterans, the homeownership equation can improve significantly.
Utilities
Winter affects utility costs.
Veterans moving from warmer states should pay attention to:
• Heating system
• Insulation
• Windows
• Gas or electric heating
• Home orientation
• Snow removal
That very affordable older house may have exciting opinions about January propane consumption.
What changes the math?
No state income tax.
Disabled Veteran property-tax relief.
Housing below the national median.
Short commutes.
And strong employment.
South Dakota works financially when the career and location align.
Outdoor Recreation & Veteran Lifestyle
South Dakota has one of the biggest geographic personality splits in the series.
East River.
West River.
Veterans will hear those terms.
They matter.
Eastern South Dakota is dominated by prairie, agriculture, lakes and growing communities such as Sioux Falls.
Western South Dakota gives you the Black Hills, Badlands and a much more mountainous landscape.
The Black Hills
The Black Hills are the outdoor centerpiece.
Veterans around Rapid City can access:
• Hiking
• Mountain biking
• Fishing
• Camping
• Hunting
• Rock climbing
• Off-road trails
• Scenic drives
• Winter recreation
Black Hills National Forest covers more than a million acres.
That gives western South Dakota Veterans a massive backyard.
Custer State Park
Custer State Park is one of the best state parks in the country.
It offers:
• Hiking
• Camping
• Fishing
• Wildlife viewing
• Scenic drives
• Mountain lakes
The park’s bison herd is famous.
Veterans should observe the standard bison rule:
It looks calm.
It is not your friend.
Badlands National Park
Badlands National Park sits east of Rapid City.
The terrain looks like someone forgot to finish rendering the planet.
Veterans can hike, camp, drive scenic routes and explore one of the most distinctive landscapes in America.
Mount Rushmore
Yes.
It is there.
You will take visiting relatives.
Eventually you will become the local person explaining where to park.
Fishing
South Dakota offers excellent freshwater fishing.
Popular species include:
• Walleye
• Northern pike
• Bass
• Trout
• Perch
• Crappie
The Missouri River reservoirs provide major fishing opportunities.
Black Hills lakes and streams add trout fishing.
Hunting
South Dakota is famous for pheasant hunting.
But Veterans can also pursue:
• Deer
• Turkey
• Waterfowl
• Antelope
• Elk under limited tags
• Small game
Hunting is not a niche hobby here.
During pheasant season, parts of the state treat blaze orange as business casual.
Disabled Veterans may qualify for reduced-fee hunting and fishing privileges.
State Parks
South Dakota has an extensive state park network.
Qualifying 100% permanently and totally disabled resident Veterans can receive a lifetime entrance license plus 50% off camping fees.
That is one of the state benefits Veterans can realistically use often.
Winter
We need to discuss this.
South Dakota winter is not a charming Christmas-card concept.
Cold happens.
Wind happens.
Snow happens.
Blizzards happen.
Rapid City and the Black Hills can experience very different weather from eastern South Dakota.
The prairie wind in particular seems personally invested in ensuring you regret going outside.
You adapt.
You buy better gear.
You own a snow shovel.
Possibly two.
Veterans who love four seasons may be fine.
Veterans moving from San Diego should probably visit in January before buying 20 acres.
Veteran Reality Check
South Dakota looks excellent on a spreadsheet.
That does not mean every Veteran will love living there.
First: the job market is tight because the workforce is small.
That creates opportunity.
It does not create every career.
Highly specialized professionals may have only a handful of employers.
Two-career households need to research both careers.
Second: Rapid City is getting more expensive.
The B-21 transition will continue adding jobs and investment.
That is good.
It also adds housing demand.
Do not assume Rapid City prices will behave like small-town South Dakota.
Third: winter is a legitimate lifestyle consideration.
This is not “bring a sweater.”
Wind chills can become dangerous.
Storms can disrupt travel.
Veterans need to be comfortable with cold-weather living.
Fourth: distance matters.
Traffic rarely does.
You may drive 60 miles without seeing congestion.
You still drove 60 miles.
Specialty healthcare, airports and professional jobs become harder to access in remote areas.
Fifth: no state income tax is excellent.
It should not make the relocation decision by itself.
A $5,000 annual tax advantage does not help if the closest job in your field is 300 miles away.
Choose the career first.
3 Things Veterans Should Know Before Moving to South Dakota
1. Ellsworth Is About to Become Even More Important
Ellsworth is preparing to become the first operational base for the B-21 Raider and the home of the B-21 Formal Training Unit.
The Air Force is in the middle of an estimated $2 billion construction effort.
That means the Rapid City region is entering a major military and economic transition.
Veterans with backgrounds in aviation, maintenance, engineering, cyber, construction, logistics and security should follow it closely.
2. South Dakota Has No Individual State Income Tax
Military retirement does not require a special state exemption.
South Dakota does not impose an individual income tax.
For working Veterans and military retirees, that can create substantial long-term savings.
Still compare property tax, sales tax, housing and insurance.
“No income tax” is an advantage.
It is not the entire budget.
3. South Dakota’s Disabled Veteran Property-Tax Benefit Is Significant
Qualifying Veterans rated permanently and totally disabled from service-connected disability can exempt up to $200,000 of assessed value on eligible owner-occupied property.
That can substantially reduce the property-tax bill.
It does not automatically mean zero property tax.
Veterans should verify the assessed value, exemption and remaining taxable amount before calculating housing costs.
Pros & Cons
Pros
✓ Lowest state unemployment rate in the country in July 2026
✓ Veteran unemployment estimated at just 2.1% in 2025
✓ No individual state income tax
✓ Ellsworth Air Force Base and historic B-21 expansion
✓ Strong aviation and defense opportunity around Rapid City
✓ Broad healthcare and financial-services economy in Sioux Falls
✓ Statewide housing below the national median
✓ Up to $200,000 assessed-value property-tax exemption for qualifying permanently and totally disabled Veterans
✓ Excellent hunting, fishing and outdoor recreation
✓ Short average commute
Cons
✕ Serious winter weather
✕ Smaller professional job markets outside Sioux Falls and Rapid City
✕ Rapid City housing is becoming less affordable
✕ Long distances between communities
✕ Rural specialty healthcare can require travel
✕ Limited large-city amenities
✕ Small population means some specialized careers have very few employers
Is South Dakota Right for You?
South Dakota is probably a strong choice if…
You want low unemployment.
You want no individual state income tax.
You receive military retirement.
You work in aviation.
You have maintenance experience.
You are an engineer.
You work in healthcare.
You work in finance, cybersecurity or risk.
You want to be part of the B-21 transition.
You hunt.
You fish.
You want homeownership without a half-million-dollar starting point.
You prefer smaller cities.
You are tired of traffic.
Or you think having more cows than commuters nearby sounds less like a punchline and more like a quality-of-life goal.
South Dakota may not be the best choice if…
You hate winter.
You need a large technology ecosystem.
You want several major metros within easy driving distance.
You require frequent specialty healthcare and insist on living remotely.
You want warm weather year-round.
Or your entire relocation plan is “there’s no state income tax.”
The G.I. Jobs Take
South Dakota is a sleeper pick for Veterans.
It does not have the giant population of Texas.
It does not have the defense density of Virginia.
It does not have the coastal lifestyle of South Carolina.
It does not need to.
South Dakota’s strengths are practical.
A 2.0% unemployment rate.
A 2.1% estimated Veteran unemployment rate.
No individual state income tax.
Housing below the national median.
Short commutes.
Strong healthcare.
A major financial-services economy in Sioux Falls.
And one of the most important Air Force transitions happening anywhere in the country around Rapid City.
Ellsworth’s B-21 future gives western South Dakota a particularly strong Veteran career story.
Meanwhile, Sioux Falls provides something equally important:
A civilian economy large enough that Veterans do not have to stay connected to defense at all.
That gives South Dakota two very different paths.
Rapid City if military connection, aviation and the Black Hills matter most.
Sioux Falls if civilian career depth matters most.
The biggest drawbacks are straightforward.
Winter.
Distance.
Smaller professional markets.
And rising housing costs in some of the places Veterans are most likely to choose.
South Dakota will not work for everyone.
But if your priorities are jobs, taxes, space, outdoor access and a realistic shot at buying a home?
Do not let the size of the state’s population fool you.
This one deserves a serious look.
Frequently Asked Questions
Is South Dakota a good state for Veterans?
Yes. South Dakota combines exceptionally low unemployment, no individual state income tax, relatively attainable housing, strong disabled Veteran property-tax benefits and a major military economy around Ellsworth Air Force Base.
How many Veterans live in South Dakota?
The U.S. Census Bureau estimates that 53,890 Veterans lived in South Dakota during 2020–2024.
What are the best cities in South Dakota for Veterans?
Rapid City is strongest for Ellsworth AFB, defense, aviation and Black Hills recreation. Sioux Falls offers the broadest civilian economy, healthcare and VA access. Brookings is strong for education and agriculture, while Hot Springs has a particularly strong Veteran healthcare and retirement presence.
Does South Dakota tax military retirement pay?
No. South Dakota does not impose an individual state income tax, so military retirement income is not subject to South Dakota personal income tax.
Does South Dakota offer property-tax relief for disabled Veterans?
Yes. Qualifying Veterans rated permanently and totally disabled from a service-connected disability can receive an exemption on up to $200,000 of assessed value for qualifying owner-occupied property.
What jobs are good for Veterans in South Dakota?
Strong fields include defense, aviation, healthcare, financial services, cybersecurity, manufacturing, agriculture, construction, logistics and government.
Why is Ellsworth Air Force Base important for Veterans?
Ellsworth has been selected as the first main operating base for the B-21 Raider and will host the B-21 Formal Training Unit. The transition is driving billions of dollars in infrastructure work and creating opportunities related to aviation, maintenance, engineering, construction, cyber, logistics and defense support.
Are there Military Friendly® schools in South Dakota?
Yes. Veterans can compare South Dakota institutions through the Military Friendly® Schools directory and should pay particular attention to technical programs in engineering, cyber, healthcare and skilled trades.
Where can Veterans receive VA healthcare in South Dakota?
Major VA healthcare hubs include the Royal C. Johnson Veterans Memorial Hospital in Sioux Falls and VA Black Hills facilities at Fort Meade and Hot Springs. Additional outpatient clinics serve communities including Aberdeen, Watertown, Wagner and Dakota Dunes.
Is South Dakota affordable for Veterans?
South Dakota remains more affordable than the national housing market overall. The statewide median sale price was $344,261 in July 2026 compared with a national median of $407,730. Rapid City and other high-demand markets can be more expensive than statewide figures suggest.
How Does South Dakota Compare?
South Dakota offers one of the strongest pure economic cases in the Best States for Veterans series.
South Carolina gives Veterans a huge multi-branch military footprint and a diversified Southeast economy.
South Dakota gives Veterans something different.
The lowest unemployment rate in the country.
No individual state income tax.
Housing below the national median.
A major emerging defense economy around the B-21.
And a civilian employment hub in Sioux Falls that has almost nothing to do with military installations.
The tradeoff is scale.
South Dakota cannot match larger states for sheer employer count.
A specialized career can run out of options quickly.
But when your skills match the economy, the numbers are hard to ignore.
Veterans in aviation, maintenance, healthcare, finance, manufacturing, construction and logistics should give South Dakota a serious look.
So should retirees who value no state income tax and outdoor access.
The state may never dominate Veteran relocation lists.
That does not mean it should not be on yours.
Compare South Dakota with the other 49 states in the complete Best States for Veterans guide.
Up Next: Tennessee
South Dakota makes its Veteran case with jobs, low taxes, attainable housing and the B-21 transition.
Next is Tennessee, where the equation shifts toward much larger metros, no individual tax on wages, major healthcare and logistics economies, Fort Campbell access, strong Veteran communities and an entirely different version of Southern living.
← Previous: South Carolina | Next: Tennessee →
Looking for the complete rankings? Visit our Best States for Veterans guide.
Sources: U.S. Census Bureau; U.S. Bureau of Labor Statistics; South Dakota Department of Veterans Affairs; South Dakota Department of Revenue; South Dakota Department of Labor and Regulation; South Dakota Governor’s Office of Economic Development; South Dakota Game, Fish and Parks; U.S. Department of Veterans Affairs; Ellsworth Air Force Base; U.S. Air Force.
