Tax Advantages of South Dakota Residency

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No one ever wants to have to deal with mountains of taxes. At the same time, we want to live in a society which is in large part funded by those same taxes. This is a classic Catch-22 which is at the heart of modern society not just in America but, indeed, around the world. It should come as no surprise, therefore, that one of the biggest things that individuals and companies take into consideration when choosing where to settle down is the tax situation.

In America, this can vary from state to state. South Dakota is, from a certain perspective, one of the most tax-friendly states in the United States. If you’re looking to pay less in taxes, South Dakota may be where it’s at – but is it really where you want to be? Most of us can’t just pick up and move. Thankfully, thanks to South Dakota’s residency laws, you can register a few vital pieces of information and property there, be considered a “resident,” and enjoy their tax advantages.

South Dakota Residency Requirements

One of the factors that helped make South Dakota a hotspot for those looking to claim tax benefits due to residency is the fact that it’s easy to set up residence there. Among the requirements necessary for setting up a residency in South Dakota are:

  • A permanent address through which you can send and receive mail. This is one of the most important requirements. If you do not primarily live in the state, you’ll want to set up an address with a mail forwarding site such as yourbestaddress.com
  • Staying at least one night in South Dakota
  • A driver’s license from SD
  • Filling out the necessary forms to claim residency

We can help with every one of these steps. Call toll free at 1-800-419-1690

Tax Advantages

As stated, there are many potential tax advantages you’ll be able to claim once you set up a residency in South Dakota. Among the most important of these tax advantages include:

  • The fact that South Dakota has neither a state income nor inheritance tax, saving you money in those crucial areas
  • No personal property tax, allowing you to own property in the wide open expanses South Dakota has to offer without having to pay taxes on it
  • Fewer mandated vehicle inspections than in other states
  • A low vehicle tax rate of only 4%
  • A low overall cost of registering vehicles in the state

Getting Set up

With all of those tax incentives in mind, it should start to become even clearer why so many people are excited about the prospect of claiming a South Dakota residency. That being said, you can’t just show up and start claiming those benefits. You have to go through a process, which includes:

  • Signing on with a mail forwarding company
  • Obtaining your street address from them
  • Applying for South Dakota voter registration, as well as a South Dakota driver’s license and vehicle registration (if applicable)
  • Being physically present so as to apply for your driver’s license in person
  • Wait for the applications to be properly processed

Follow this path to claim South Dakota’s great tax benefits.

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