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Updated 2025 Tax Year

Clay County
Property Tax Guide

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

10 Official Sources
8 min read
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Quick Facts
Tax Rate
0.50% base county rate + additional district levies (total varies by location)
Exemptions
4+ Available
Section 1

How Property Tax Works

Clay County, South Dakota operates on a property tax system that serves as the primary funding mechanism for essential local services including schools, roads, emergency services, and county operations. Property taxes in Clay County are levied based on assessed property values, with the county's effective tax rate for 2025 being approximately 0.50% of assessed value. However, this base rate represents only the county portion of your total property tax bill.

Your actual property tax rate will vary depending on your specific location within Clay County due to additional assessments from special taxing districts such as school districts, municipalities, fire districts, and other local improvement districts. These additional levies can significantly impact your total tax burden, making it important to understand all the taxing jurisdictions that apply to your specific property. The South Dakota Department of Revenue and Clay County Assessor's Office work together to ensure fair and accurate property assessments throughout the county.

Section 2

What Makes Up Your Tax Bill

ComponentRateDescription
County General Fund0.50%Base county services, roads, administration
School DistrictVariesLocal school district operations and bonds
MunicipalVariesCity services (if within city limits)
Fire DistrictVariesFire protection services
Water/Sewer DistrictVariesUtility infrastructure (where applicable)
Special AssessmentsVariesLocal improvement projects

Rates shown are for Levy Year 2025 and represent the county base rate. Total effective rates typically range from 1.2% to 2.5% depending on your specific taxing districts. Contact the Clay County Assessor's Office at (605) 677-7120 for your property's exact rate breakdown, as special district boundaries create significant variation in total tax rates throughout the county.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Clay 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 Clay County are additional property tax assessments that occur when there are changes to your property outside the regular assessment cycle. The most common triggers include ownership transfers (such as sales or refinancing that remove transfer exemptions), new construction completion, major improvements, or corrections to previous assessments. When a supplemental assessment is issued, it covers the period from when the change occurred through the end of the current tax year.

Supplemental taxes are calculated by applying the current year's tax rate to the difference between your old and new assessed values, then prorating this amount based on the number of months remaining in the tax year. For example, if your home's assessed value increases by $50,000 due to completed renovations in July, and your total tax rate is 1.5%, you would owe approximately $375 in supplemental taxes ($50,000 × 1.5% × 6 months ÷ 12 months). Supplemental tax bills are typically issued within 30-60 days of the triggering event and become due immediately upon receipt.

Example Calculation

Example 1: $300,000 Home with Senior Homestead Credit

  • Market Value: $300,000
  • Assessed Value: $300,000
  • Senior Homestead Credit Applied: -$5,000 (requires application)
  • Net Taxable Value: $295,000
  • Tax Rate: 1.4% (including special districts)
  • Annual Tax: $4,130
  • Monthly Escrow: $344

Example 2: $600,000 Home with Standard Homestead Credit

  • Market Value: $600,000
  • Assessed Value: $600,000
  • Homestead Credit Applied: -$3,000 (requires application)
  • Net Taxable Value: $597,000
  • Tax Rate: 1.6% (including special districts)
  • Annual Tax: $9,552
  • Monthly Escrow: $796

Example 3: $1,000,000 Home (No Credits)

  • Market Value: $1,000,000
  • Assessed Value: $1,000,000
  • Credits Applied: $0
  • Net Taxable Value: $1,000,000
  • Tax Rate: 1.8% (including special districts)
  • Annual Tax: $18,000
  • Monthly Escrow: $1,500

Note: All tax credits require annual application and approval. Rates vary by specific location within Clay County.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Clay County require property tax escrow accounts to ensure timely payment of property taxes. Your lender will collect approximately 1/12th of your estimated annual property tax bill with each monthly mortgage payment, holding these funds in an escrow account. Since Clay County property taxes are due in two installments (first half by October 15th and second half by January 15th), your lender will make payments directly to the Clay County Treasurer on these due dates.

Lenders are required to conduct annual escrow analyses to ensure adequate funds are available and to adjust your monthly payment if necessary. You should receive an escrow statement showing the previous year's activity and any changes to your monthly escrow amount. If your property taxes increase due to reassessment or rate changes, your lender may require you to make up any shortage over 12 months while also increasing future monthly payments. You can verify your tax payments were received by checking with the Clay County Treasurer's Office at (605) 677-7110 or through their online payment portal.

How HonestCasa Helps
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Section 6

Frequently Asked Questions

Q: When are Clay County property taxes due for fiscal year 2025-2026? A: Property taxes are due in two equal installments: first half by October 15, 2025, and second half by January 15, 2026. Payments received after these dates are subject to penalty and interest charges.

Q: What tax credits are available in Clay County and do I need to apply? A: Clay County offers several tax credits including Homestead Credit, Senior Homestead Credit, Disabled Veteran Credit, and Agricultural Land Credit. All credits require annual application and are NOT automatic. Applications must be filed with the Clay County Assessor's Office by March 1st each year.

Q: How does the Homestead Credit work? A: The Homestead Credit limits annual assessment increases on your primary residence to a maximum percentage (typically 10% in South Dakota), rather than reducing your property's market value. You must apply annually by March 1st to receive this protection against large assessment increases.

Q: How often are properties reassessed in Clay County? A: Clay County conducts property reassessments annually, with market values updated to reflect current real estate conditions. You'll receive a notice of assessed value each spring, typically in April or May.

Q: How do I appeal my property assessment? A: Assessment appeals must be filed with the Clay County Board of Equalization by June 1st following the assessment notice. You can file online, by mail, or in person at the Clay County Courthouse. Include comparable property data to support your appeal.

Q: What are the penalties for late property tax payments? A: Late payments incur a penalty of 1.5% per month plus interest. After three years of delinquency, properties may be sold at tax deed sale.

Q: Can I pay my property taxes online? A: Yes, Clay County offers online payment options through their official website. You can pay by electronic check or credit card, though credit card payments may include processing fees.

Q: Why do property tax rates vary within Clay County? A: Different areas of Clay County are served by various special taxing districts including different school districts, fire districts, municipalities, and improvement districts. Each adds their own levy to the base county rate, creating location-specific total tax rates.

Verified Sources

Backed by 10 Official Government Sources

Every fact in this guide is sourced from official county, state, and federal documents.

01
Tax Doc
Tax-Rates.org — The 2024-2025 Tax Resourcemylrc.sdlegislature.gov
02
Tax Doc
Calculating the Dollars Needed to Reduce Property Taxesmylrc.sdlegislature.gov
03
Tax Doc
Property Tax | South Dakota Department of Revenuedor.sd.gov
04
South Dakota Department of Revenue: Homedor.sd.gov
05
Tax Doc
Property Tax 101 - South Dakota Department of Revenuedor.sd.gov
06
Relief Programs | South Dakota Department of Revenuedor.sd.gov
07
Tax Doc
Tax Exempt Propertymylrc.sdlegislature.gov
08
Register of Deeds | South Dakota Department of Revenuedor.sd.gov
09
County
Exhibits and Appendices to County Revenues and ...mylrc.sdlegislature.gov
10
Codified Law 7 | South Dakota Legislaturesdlegislature.gov
All sources verified as of 2025 Tax Year

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