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How did South Dakota earn the grade of A? We examined the state taxes based on how age friendly they are. South Dakota has a state sales tax of 4.50%. Of particular interest is that South Dakota does not have taxes on social security. There are no estate taxes. There are no taxes imposed on inheritance. South Dakota has an effective property tax rate of 1.32%. Weighing these taxes and other taxes most likely to impact the aging population is how South Dakota earned its state tax grade of A.
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