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Updated 2025 Tax Year

McPherson County
Property Tax Guide

Everything you need to know about property taxes in McPherson 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% base rate, varies by taxing district and municipality within county
Exemptions
4+ Available
Section 1

How Property Tax Works

McPherson County, South Dakota operates under the state's property tax system, where property taxes serve as the primary funding source for essential local services including schools, county government operations, road maintenance, and emergency services. The county follows South Dakota's assessment practices with properties typically assessed at approximately 85% of market value for residential properties. Property owners in McPherson County can expect effective tax rates that generally align with the state's base rate of around 1%, though actual rates vary significantly based on your specific location within the county.

The total tax rate you pay depends on which special taxing districts your property falls within, including school districts, municipalities, and other local assessment areas. This means two properties of identical value in different parts of McPherson County may have different tax obligations. The county is experiencing modest tax rate growth, with projections showing a 3.4% increase for the 2025 levy year, though final rates are pending approval by local governing bodies.

Section 2

What Makes Up Your Tax Bill

ComponentEstimated Rate (per $1,000)Description
County General Fund$3.50-4.20Core county services, administration, law enforcement
School District$8.00-12.00K-12 education funding (varies by district)
Township/Municipal$1.00-3.00Local road maintenance, municipal services
Special Assessments$0.50-2.00Fire districts, library districts, other special services
Total Estimated Range$13.00-21.20Combined rate varies by location

Rates shown are estimates for FY 2025-2026 levy year and may vary based on final budget approvals. Actual rates depend on your specific taxing districts. The 2025 rates reflect a projected 3.4% increase from 2024 levels. Contact the McPherson County Assessor for precise rates applicable to your property's location.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in McPherson 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 McPherson County are triggered when property improvements or ownership changes occur mid-tax year. The most common triggers include new construction, property additions, subdivisions, or significant renovations that increase assessed value. When supplemental taxes are levied, they represent the prorated tax obligation for the portion of the tax year following the improvement completion or ownership transfer date.

The calculation applies the current tax rate to the increased assessed value, prorated from the effective date through the end of the tax year. For example, if you complete a $100,000 home addition on July 1st, the supplemental tax would apply to the additional assessed value (approximately $85,000 at 85% assessment ratio) for the remaining six months of the tax year. This supplemental amount would be calculated as: ($85,000 ÷ $1,000) × current tax rate × 0.5 (for half-year). These supplemental taxes are billed separately from regular property tax bills and typically have their own due dates.

Example Calculation

Example 1: $300,000 Property

  • Market Value: $300,000
  • Assessed Value (85%): $255,000
  • Less: Owner-Occupied Credit (if applicable): -$5,000
  • Net Taxable Value: $250,000
  • Annual Tax (@ $16.50/$1,000): $4,125
  • Monthly Payment: $344

Example 2: $600,000 Property

  • Market Value: $600,000
  • Assessed Value (85%): $510,000
  • Less: Owner-Occupied Credit (if applicable): -$5,000
  • Net Taxable Value: $505,000
  • Annual Tax (@ $16.50/$1,000): $8,333
  • Monthly Payment: $694

Example 3: $1,000,000 Property

  • Market Value: $1,000,000
  • Assessed Value (85%): $850,000
  • Less: Owner-Occupied Credit (if applicable): -$5,000
  • Net Taxable Value: $845,000
  • Annual Tax (@ $16.50/$1,000): $13,943
  • Monthly Payment: $1,162

Tax credits shown require annual application and approval. Calculations use estimated rates - actual rates vary by taxing district location.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in McPherson County require property tax escrow accounts for loans with less than 20% down payment. Your lender collects monthly tax payments along with principal and interest, depositing funds into an escrow account. The servicer pays your property taxes directly to McPherson County on the April 30th and October 31st due dates. Lenders typically collect an initial escrow deposit at closing covering 2-3 months of estimated taxes, then adjust monthly payments based on actual tax bills.

Annual escrow analysis occurs each year when lenders review actual tax payments against collected amounts. If taxes increase or decrease significantly, your monthly payment will be adjusted accordingly. You can verify escrow payments by reviewing your annual escrow statement and comparing it against McPherson County tax records. Property owners with escrow accounts should still monitor their tax bills for accuracy, as assessment or exemption errors affect the escrow analysis and future monthly payments.

How HonestCasa Helps
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Section 6

Frequently Asked Questions

Q: When are property taxes due in McPherson County? A: For real property, first half taxes are due April 30th and second half due October 31st. Personal property taxes follow a different schedule with first half due December 20th and second half due May 10th for the current tax year.

Q: What tax credits are available and how do I apply? A: South Dakota offers several tax credits including owner-occupied (homestead) credits for primary residences, elderly/disabled credits, and agricultural use credits. Most credits require annual application through the county assessor's office with specific deadlines. Contact the McPherson County Assessor for current applications and deadlines.

Q: How does the homestead credit work? A: The homestead credit limits annual assessment increases rather than reducing market value. It caps assessment growth to help protect homeowners from dramatic tax increases due to rising property values. You must apply annually and the property must be your primary residence.

Q: How often are properties reassessed? A: South Dakota conducts countywide reassessments every three years, with annual adjustments for market changes. Property owners receive assessment notices and have appeal rights if they believe the assessed value is incorrect.

Q: What are the penalties for late payment? A: Late payments incur penalties and interest charges. First half taxes unpaid after April 30th and second half taxes unpaid after October 31st begin accruing penalties immediately. Contact the county treasurer for current penalty rates.

Q: Can I pay property taxes online? A: Yes, McPherson County offers online payment options through their official website. Electronic payments, credit cards, and bank transfers are typically accepted with varying processing fees.

Q: Why did my tax bill increase if my assessment stayed the same? A: Tax increases can occur even with stable assessments due to rising tax rates from local budget increases, new bond issues, or changes in special district assessments that apply to your property location.

Q: How do special taxing districts affect my bill? A: Your property location determines which school district, fire district, township, and other special assessment areas apply. Properties in different areas of McPherson County may have significantly different total tax rates due to these district variations.

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
Property Tax | South Dakota Department of Revenuedor.sd.gov
02
County
Tax Information | McPherson County Official Websitemcphersoncountyks.us
03
County
PAYABLE 2025 TAX RATES FOR BLUE EARTH COUNTYblueearthcountymn.gov
04
County
Treasurer - McPherson Countymcpherson.sdcounty.gov
05
Director of Equalization | South Dakota Department of Revenuedor.sd.gov
06
Tax Doc
Tax Exempt Propertymylrc.sdlegislature.gov
07
County
County Treasurers | South Dakota Department of Revenuedor.sd.gov
08
County
LINN COUNTY LAW LIBRARY Westlaw Edge Contentlinncountyor.gov
09
County
MCPHERSON COUNTY AUDIT REPORT For the Two Years ...legislativeaudit.sd.gov
10
County
McPherson County Application for Conditional Use Permit ( ...puc.sd.gov
All sources verified as of 2025 Tax Year

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