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Updated 2025 Tax Year

Davison County
Property Tax Guide

Everything you need to know about property taxes in Davison 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
Approximately 1% of assessed value (varies by taxing district combinations)
1st Due
May 30
2nd Due
Oct 31
Exemptions
4+ Available
Section 1

How Property Tax Works

Davison County, South Dakota operates under the state's property tax system, where property taxes serve as the primary funding source for local government services including schools, county operations, emergency services, and infrastructure maintenance. Property owners in Davison County typically face an effective tax rate around the state average of approximately 1% of assessed value, though actual rates vary significantly based on your specific location within the county due to different combinations of special taxing districts.

The county assesses real property annually, with taxes calculated based on assessed value multiplied by the total mill levy rate for your area. Your specific tax rate depends on which taxing jurisdictions serve your property, including the county general fund, school districts, municipalities, and various special districts for services like fire protection, water systems, or rural fire departments. Property tax bills are split into two installments, with the first half due in April and the second half due in October of each year.

Section 2

What Makes Up Your Tax Bill

ComponentApproximate Rate (Mills)Description
County General3.5-4.5Basic county services, roads, courthouse operations
School District12-18K-12 education funding (varies by district)
Municipal2-6City services (if within city limits)
Special Districts1-8Fire protection, water, library, other local services
Total Range18-36 MillsCombined rate varies by location

Note: These rates reflect the FY 2024-2025 levy year and are estimates. Your actual total mill levy depends on the specific combination of taxing districts serving your property. Contact the Davison County Director of Equalization at (605) 995-8610 for your exact rate breakdown.

Section 3

When Are Property Taxes Due?

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

First Installment
May 30
Delinquent after Dec 10
Second Installment
Oct 31
Delinquent after Apr 10
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 Davison County are additional property tax assessments issued when there are mid-year changes to property ownership, new construction completion, or property improvements that weren't included in the regular annual assessment. Common triggers include newly constructed homes becoming occupied, major renovations or additions completed after the January 1st assessment date, or property transfers that reveal previously unreported improvements.

For example, if you complete a $50,000 home addition in June that wasn't captured in the January assessment, the county assessor would issue a supplemental tax bill for the prorated portion of the year (7 months). The calculation would be: $50,000 increase in assessed value × your area's total mill levy ÷ 1,000 × 7/12 months = additional tax owed. Supplemental tax bills are typically mailed within 60-90 days of the triggering event and become due 30 days from the issue date.

Example Calculation

Example 1: $300,000 Home in Mitchell School District

  • Market Value: $300,000
  • Assessed Value: $300,000 (100% in SD)
  • Less: Senior/Disabled Tax Credit: -$0 (requires application)
  • Net Taxable Value: $300,000
  • Total Mill Levy: 28 mills
  • Annual Tax: $8,400 ($300,000 × 0.028)
  • Monthly Escrow: $700

Example 2: $600,000 Home with Homestead Credit

  • Market Value: $600,000
  • Assessed Value: $600,000
  • Less: Applied Tax Credits: -$0 (homestead caps assessment increases, doesn't reduce base value)
  • Net Taxable Value: $600,000
  • Total Mill Levy: 25 mills
  • Annual Tax: $15,000 ($600,000 × 0.025)
  • Monthly Escrow: $1,250

Example 3: $1,000,000 Property in Rural Area

  • Market Value: $1,000,000
  • Assessed Value: $1,000,000
  • Less: Agricultural/Other Credits: -$0 (if qualified and applied for)
  • Net Taxable Value: $1,000,000
  • Total Mill Levy: 22 mills
  • Annual Tax: $22,000 ($1,000,000 × 0.022)
  • Monthly Escrow: $1,833

All credits require separate applications and approval. Contact the Director of Equalization for current credit programs.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Davison County require property tax escrow accounts, where you pay 1/12th of your annual property tax bill with each monthly mortgage payment. Your lender deposits these funds into an escrow account and pays your property tax bills directly to the county treasurer when they become due in April and October. Lenders typically collect an initial escrow deposit of 2-3 months at closing to ensure adequate funds are available.

The county mails tax bills directly to property owners around March 1st, but if your taxes are escrowed, you should provide a copy to your lender to verify they have the correct payment amount. Your lender must provide an annual escrow analysis showing payments in and out, and they may adjust your monthly escrow payment if taxes increase significantly. If your escrow account has a shortage, the lender may offer to spread the deficiency over 12 months or require a lump sum payment. You can verify your tax payments were received by checking with the Davison County Treasurer's office at (605) 995-8605.

How HonestCasa Helps
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Section 6

Frequently Asked Questions

Q: When are Davison County property taxes due for FY 2024-2025? A: The first half is due by April 30, 2024, and the second half is due by October 31, 2024. Payments postmarked on the due date are considered timely.

Q: What tax credits are available and do they require applications? A: South Dakota offers several tax credit programs including Senior Citizens/Disabled Persons credits, Veterans disability credits, and Homestead credits. ALL credits require separate applications filed with the Director of Equalization office, typically by March 1st annually.

Q: How does the Homestead credit work? A: The Homestead credit doesn't reduce your property's assessed value. Instead, it caps annual assessment increases on your primary residence, typically limiting year-over-year increases. You must apply annually, and it only applies to owner-occupied homes.

Q: When does the county assess properties and how can I appeal? A: Properties are assessed annually as of January 1st. Assessment notices are mailed by March 15th. You have until May 1st to appeal your assessment with the County Board of Equalization. Contact the Director of Equalization at (605) 995-8610 to start the appeal process.

Q: What are the penalties for late payment? A: Late payments incur interest charges at rates set by state law, typically around 1.5% per month. If taxes remain unpaid, the property may eventually be subject to tax lien sale proceedings.

Q: Can I pay my property taxes online? A: Yes, Davison County offers online payment options through their website. Contact the County Treasurer's office at (605) 995-8605 for current online payment portals and accepted payment methods.

Q: Why did my taxes increase when my neighbor's stayed the same? A: Tax amounts depend on your specific combination of taxing districts (school, city, fire, water, etc.), any improvements to your property, changes in assessed value, and whether you qualify for tax credits that your neighbor may not receive.

Q: How do special district taxes affect my bill? A: Special districts like rural fire departments, water systems, or library districts add their own mill levies to your tax bill. Your location determines which special districts serve your property, which is why tax rates vary significantly even within the same county.

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
County
HANSON COUNTY COMMISSIONERShansoncountysd.gov
04
Tax Doc
Application for abatement and/or refund of property taxescityofmitchellsd.gov
05
Tax Doc
Property Tax | South Dakota Department of Revenuedor.sd.gov
06
Codified Law 7 | South Dakota Legislaturesdlegislature.gov
07
Relief Programs | South Dakota Department of Revenuedor.sd.gov
08
South Dakotairs.gov
09
Tax Doc
Tax Exempt Propertymylrc.sdlegislature.gov
10
City Council Agendacityofmitchellsd.gov
All sources verified as of 2025 Tax Year

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