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Updated 2025 Tax Year

Lincoln County
Property Tax Guide

Everything you need to know about property taxes in Lincoln 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 rate, varies by taxing district combinations (school, municipal, special service areas)
Exemptions
5+ Available
Section 1

How Property Tax Works

Lincoln 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 government operations. Property taxes in Lincoln County are calculated by applying mill levies (tax rates) to the assessed value of real property, with the total tax rate varying significantly based on your property's location within specific taxing districts such as school districts, municipalities, and special service areas.

The effective property tax rate in Lincoln County typically ranges from approximately 0.50% to higher percentages depending on your specific location and the combination of overlapping taxing districts that serve your property. Agricultural property receives preferential treatment with taxable value calculated as 85% of assessed value. Property owners should note that tax rates can vary considerably even within the county based on which school district, city, and special districts (such as fire districts or library districts) serve their particular address.

Section 2

What Makes Up Your Tax Bill

ComponentRateDescription
County General LevyVariesBasic county services, roads, administration
School District LevyVaries by DistrictK-12 education funding, varies significantly by school district
Municipal LevyVaries by CityCity services (if within city limits)
Special DistrictsVariesFire districts, library districts, water districts as applicable
Total Effective Rate~0.50%+Combined rate for FY 2025-2026 levy year

Note: The actual tax rate for your property depends on which combination of taxing districts serve your specific location. Properties in different school districts or municipalities within Lincoln County will have different total tax rates. Agricultural property is taxed on 85% of assessed value (Taxable value = Assessed value × 0.85). Contact the Lincoln County Assessor's office to determine the exact levy combination for your property address.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Lincoln 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 Lincoln County are additional property tax assessments that occur when there are changes to property ownership, improvements, or new construction that were not included in the regular annual assessment cycle. These taxes are calculated using the same mill levy rates as regular property taxes but are prorated based on the timing of the change during the tax year.

Common triggers for supplemental taxes include: purchasing a newly constructed home, completing major renovations or additions, change of property use, or correction of assessment errors. For example, if you complete a $100,000 home addition in March, you would receive a supplemental tax bill covering the additional assessed value for the remaining months of that tax year. The supplemental tax would be calculated as: (Additional Assessed Value × Current Mill Levy Rate ÷ 1000) × (Months Remaining ÷ 12).

Example Calculation

Example 1: $300,000 Home

  • Market Value: $300,000
  • Assessed Value: $300,000
  • Less: Homestead Tax Credit (if applied): Varies
  • Net Taxable Value: ~$300,000
  • Annual Tax (0.50% rate): $1,500
  • Monthly Escrow: ~$125

Example 2: $600,000 Home

  • Market Value: $600,000
  • Assessed Value: $600,000
  • Less: Homestead Tax Credit (if applied): Varies
  • Net Taxable Value: ~$600,000
  • Annual Tax (0.50% rate): $3,000
  • Monthly Escrow: ~$250

Example 3: $1,000,000 Home

  • Market Value: $1,000,000
  • Assessed Value: $1,000,000
  • Less: Applicable Tax Credits (if applied): Varies
  • Net Taxable Value: ~$1,000,000
  • Annual Tax (0.50% rate): $5,000
  • Monthly Escrow: ~$417

Note: Tax credits require separate application and are not automatically applied. Actual rates vary by taxing district location within Lincoln County. Examples use approximate base rate - your actual rate may be higher depending on school district and special districts.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Lincoln County require property tax escrow accounts for borrowers with less than 20% down payment, though some lenders may require escrow regardless of down payment amount. Your lender collects monthly escrow payments along with your mortgage payment, typically calculating 1/12th of your annual property tax bill plus a small cushion to ensure adequate funds are available when taxes are due.

Lincoln County property taxes are paid in two installments: the first half is due by April 30th and the second half by October 31st. Your mortgage servicer will make these payments directly to the Lincoln County Treasurer's office from your escrow account. Lenders typically conduct annual escrow analyses to adjust your monthly payment based on actual tax bills and account for any changes in assessed value or tax rates. If your taxes increase significantly, you may need to pay an escrow shortage or accept a higher monthly payment for the following year.

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 Lincoln County property taxes due for FY 2025-2026? A: Property taxes are paid in two installments - first half due by April 30th and second half due by October 31st. Payments must be postmarked by these dates to avoid interest charges.

Q: What tax credits are available and do they require application? A: The primary credit is the Property Tax Homestead Credit (SDCL 43-31-33), which requires annual application using form PT 38C. This credit is NOT automatic and must be applied for each year. Contact the Lincoln County Assessor's office for eligibility requirements and application deadlines.

Q: How does the Homestead Tax Credit work? A: The Homestead Credit caps the annual increase in assessed value for qualifying owner-occupied homes, typically limiting assessment growth rather than reducing the actual market value. This requires annual application and is not automatically applied to your property.

Q: How often are properties reassessed in Lincoln County? A: South Dakota conducts property assessments annually. The Lincoln County Assessor's office reviews property values each year, with notices typically mailed in spring for the following tax year.

Q: What is the deadline to appeal my property assessment? A: Property owners can appeal their assessment to the local board of equalization, typically by mid-May. Contact the Lincoln County Assessor's office for specific appeal deadlines and procedures for the current assessment year.

Q: What are the penalties for late property tax payment? A: Interest accrues on unpaid property taxes after the April 30th and October 31st due dates. Contact the Lincoln County Treasurer's office for current penalty and interest rate information.

Q: Can I pay my property taxes online? A: Contact the Lincoln County Treasurer's office directly to inquire about online payment options and accepted payment methods for property taxes.

Q: Why did my tax bill increase when my assessment stayed the same? A: Tax increases can occur even with unchanged assessments due to increased mill levy rates from the county, school districts, municipalities, or special districts serving your property. Each taxing entity sets their own levy rate annually based on budget needs.

Verified Sources

Backed by 10 Official Government Sources

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

01
Generallincolncountysd.gov
02
Tax Doc
Notice of Property Tax Increaselincolncountysd.gov
03
Tax Doc
Tax-Rates.org — The 2024-2025 Tax Resourcemylrc.sdlegislature.gov
04
County
Calendar • Lincoln County, SD • CivicEngagelincolncountysd.gov
05
Tax Doc
Property Taxeslincolncountysd.gov
06
Tax Doc
application for abatement and/or refund of property taxesharrisburgsd.gov
07
Tax Doc
Application for Property Tax Homestead Exemptiondor.sd.gov
08
Relief Programs | South Dakota Department of Revenuedor.sd.gov
09
2011 Revised Subdivision Ordinancelincolncountysd.gov
10
gas_09122006.xmltreasurydirect.gov
All sources verified as of 2025 Tax Year

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