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Updated 2025 Tax Year

Butte County
Property Tax Guide

Everything you need to know about property taxes in Butte County, SD. Rates, due dates, exemptions, and how it affects your monthly payment.

10 Official Sources
8 min read
Quick Facts
Tax Rate
0.50% base rate, varies by district (school districts, municipalities, special assessments add to total rate)
Exemptions
4+ Available
Section 1

How Property Tax Works

Butte County, South Dakota operates on a property tax system that funds essential local services including schools, roads, law enforcement, and county operations. Property owners pay taxes based on their property's assessed value multiplied by the applicable tax rate, which varies by location within the county due to different combinations of special taxing districts.

The county's property tax rate for the 2025 levy year is approximately 0.50% as a base rate, though your actual rate may be higher depending on which school districts, municipalities, and special assessment districts serve your property. Property taxes are assessed annually based on market value as of January 1st each year, with South Dakota applying a standard assessment ratio. Unlike some states, South Dakota does not impose a statewide assessment cap, allowing property values to be assessed at full market value.

Actual tax bills can vary significantly within Butte County based on your specific location, as different areas are served by different school districts and may be subject to various special assessments for services like fire protection, water districts, or infrastructure improvements.

Section 2

What Makes Up Your Tax Bill

ComponentRateDescription
County General0.30%Basic county services, roads, administration
School District0.15%Local school operations (varies by district)
Municipality0.05%City services (if within city limits)
Total Base Rate0.50%FY 2025 base rate before special assessments

Note: These rates are for the 2025 levy year effective January 1, 2025. Additional special district assessments may apply depending on your property's location, including:

  • School building bonds
  • Fire protection districts
  • Water/sewer districts
  • Road improvement districts

Your actual tax rate may be higher than the base 0.50% due to these additional assessments. Contact the Butte County Assessor's Office at (605) 892-4485 for your property's specific tax rate and applicable districts.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Butte County, property taxes are due in two installments:

Pro tip: If you pay through mortgage escrow, your lender splits these payments across your monthly mortgage. If you pay directly, set calendar reminders to avoid late penalties.
Section 4

Supplemental Tax Bills

Supplemental taxes in Butte County are additional tax bills issued when property ownership changes or new construction is completed after the January 1st assessment date. These taxes cover the difference between what was originally assessed and what should have been assessed for the current tax year.

Supplemental taxes are calculated by determining the difference between the new assessed value and the original assessed value, then applying the current tax rate to that difference. The supplemental tax is prorated based on the number of months remaining in the tax year after the triggering event.

For example, if you purchase a home in June that was previously assessed at $200,000 but now has a market value of $250,000, you would receive a supplemental tax bill for the $50,000 difference multiplied by the tax rate, prorated for the remaining 7 months of the tax year. This supplemental bill would be due within 30 days of issuance.

Example Calculation

Example 1: $300,000 Home

  • Market Value: $300,000
  • Assessed Value: $300,000
  • Less: Homestead Credit (if applied for): -$5,000
  • Net Taxable Value: $295,000
  • Annual Tax (0.50% rate): $1,475
  • Monthly Escrow: $123

Example 2: $600,000 Home

  • Market Value: $600,000
  • Assessed Value: $600,000
  • Less: Homestead Credit (if applied for): -$5,000
  • Net Taxable Value: $595,000
  • Annual Tax (0.50% rate): $2,975
  • Monthly Escrow: $248

Example 3: $1,000,000 Home

  • Market Value: $1,000,000
  • Assessed Value: $1,000,000
  • Less: Homestead Credit (if applied for): -$5,000
  • Net Taxable Value: $995,000
  • Annual Tax (0.50% rate): $4,975
  • Monthly Escrow: $415

Note: Homestead Credit requires annual application and is not automatic. Actual rates may be higher due to special district assessments. These examples use the base county rate only.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Butte County require property tax escrow accounts for borrowers with less than 20% down payment. Your lender will estimate your annual property tax bill and divide it by 12 to determine your monthly escrow payment, which is added to your principal and interest payment.

Property taxes in Butte County are payable in three installments: first third by February 15, second third by May 15, and final third by August 15. Your lender will typically pay each installment on your behalf from your escrow account and provide you with annual escrow statements showing payments made and balance adjustments.

If your property taxes increase due to reassessment or new special assessments, your lender will adjust your monthly escrow payment accordingly. You'll receive notice of any escrow payment changes at least 60 days in advance. Property owners without escrow accounts are responsible for making payments directly to the Butte County Treasurer by the due dates to avoid penalties and interest charges.

How HonestCasa Helps
  • Understand whether your escrow is set correctly
  • See how rising taxes will change your monthly payment
  • Plan ahead instead of being surprised by "shortage" letters
Section 6

Frequently Asked Questions

Q: When are property taxes due in Butte County for the current fiscal year? A: Property taxes are due in three equal installments: first third by February 15, second third by May 15, and final third by August 15, 2025.

Q: What tax credits are available and do I need to apply? A: The primary tax credit is the Homestead Credit, which can reduce your assessed value by up to $5,000. This credit requires an annual application filed with the County Assessor's office and is NOT automatic - you must apply each year to receive it.

Q: How does the Homestead Credit work? A: The Homestead Credit limits assessment increases on your primary residence and can provide up to $5,000 in assessed value reduction. It does not reduce your property's market value but caps how much your assessment can increase year-over-year. You must file an application annually to maintain this credit.

Q: When are properties reassessed in Butte County? A: Properties are assessed annually as of January 1st. Assessment notices are typically mailed in April, and you have 30 days from the notice date to appeal your assessment to the County Board of Equalization.

Q: What are the penalties for late property tax payments? A: Late payments incur penalties and interest charges. After the due date, penalties of 1.5% per month are added to unpaid balances, and properties may eventually be subject to tax deed proceedings if taxes remain unpaid.

Q: Can I pay my property taxes online? A: Yes, Butte County offers online payment options through the County Treasurer's website. You can pay by electronic check or credit card, though credit card payments may incur processing fees.

Q: Why did my tax bill increase even though the tax rate stayed the same? A: Tax bills can increase due to higher property assessments, new special district assessments, school bond measures, or the expiration of previous tax credits. Contact the Assessor's office to review your specific assessment and applicable tax credits.

Q: What special district taxes might apply to my property? A: Depending on your location, you may pay additional taxes for school building funds, fire protection districts, water/sewer districts, or road improvement districts. These vary by geographic area within Butte County and are listed separately on your tax bill.

Q: How do I appeal my property assessment? A: Assessment appeals must be filed within 30 days of receiving your assessment notice. Contact the Butte County Assessor's office at (605) 892-4485 to begin the appeal process with the County Board of Equalization.

Q: Are there tax credits for seniors or disabled veterans? A: South Dakota offers various property tax relief programs for seniors and disabled veterans. Contact your County Assessor's office to learn about available programs and application requirements, as most require annual applications and have specific eligibility criteria.

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