South Dakota

South Dakota real estate transfer fee: rate, who pays, exemptions

South Dakota charges a transfer fee of $0.50 per $500 of value (0.1%), paid by the seller. On a $400,000 sale in Sioux Falls it is $400. Exemptions explained.

Checked on against the official sources listed at the bottom of the page.

In short

South Dakota imposes a real estate transfer fee of $0.50 for each $500 of value, or fraction thereof (SDCL 43-4-21), which is 0.1%. The statute makes the grantor, the seller, pay it. The county register of deeds collects it when the deed is recorded. On a $400,000 sale the fee is $400, according to the Minnehaha County fee schedule.

What does the statute say?

South Dakota law calls this charge a “fee” imposed “upon the privilege of transferring title to real property” (SDCL 43-4-21). The rate is fifty cents for each five hundred dollars of value, or fraction of $500. The Minnehaha County Register of Deeds states the same rate as “$1.00 per thousand, $.50 per $500.” The statute does not set a minimum or a maximum.

The fee is the same in every county. The register of deeds collects it “based upon the value declared” when the deed is offered for recording, and writes the amount on the face of the deed (SDCL 43-4-24). The register must send the money to the county general fund each month (SDCL 43-4-25).

Who pays it?

By law, the grantor pays (SDCL 43-4-21). In a sale, the grantor is the seller. The purchase contract could shift the cost to the buyer by agreement, but the statute itself names the seller.

The deed must come with a certificate of real estate value for deeds dated after July 1, 1988. It lists the buyer and seller, the legal description, the actual consideration exchanged and the relationship of the parties (SDCL 7-9-7(4)). The register may not accept the deed without it. Giving a false value, or falsely claiming an exemption, to pay too little is a Class 1 misdemeanor (SDCL 43-4-26).

How much is the fee? Examples

The fee rounds up to the next $500 increment. These figures apply the statute’s formula; they are examples, not quotes.

Sale price$500 increments (rounded up)Transfer fee
$250,000500$250.00
$400,000800$400.00
$400,001801$400.50
$600,0001,200$600.00

The fee comes on top of recording fees. Minnehaha County lists $30 to record a deed and $30 to record a mortgage, plus $1 per page for copies (county schedule, as of October 2026). Documents over 50 pages cost $2 more for each extra page. For a full picture of what each side pays, see closing costs in South Dakota.

Does Sioux Falls or Minnehaha County add its own tax?

The sources reviewed for this article show one transfer fee. The statute credits the proceeds to the county general fund (SDCL 43-4-25). The Minnehaha County schedule lists “Transfer Fee: $1.00 per thousand, $.50 per $500” under real estate and shows no separate city charge. For the home itself, the city of Sioux Falls and the county taxes appear on your yearly bill; see South Dakota property tax and the Sioux Falls guide.

Which transfers are exempt?

SDCL 43-4-22 lists 19 exemptions. The ones most likely to matter to homeowners:

ExemptionSubdivision
Transfers to or by the United States, the state or its agencies and political subdivisions(2)
Transfers made only to provide or release security for a debt, such as a mortgage(3)
Deeds that confirm or correct an earlier recorded deed(4)
Between spouses, or parent and child, for only nominal consideration(5)
Tax sales, sheriffs’ deeds, foreclosure deeds and deeds in lieu of foreclosure(6)
Partition(7)
Decrees of distribution in an estate(10)
Absolute gifts between individuals, with nothing given in return(16)
Decree of divorce, annulment or separate maintenance, or a settlement approved by the decree(17)
Transfers for which no consideration was given(18)

The list also covers some transfers involving corporations, limited liability companies, partnerships and fiduciaries. An exempt deed must carry the words “exempt from transfer fee” and name the subdivision claimed (SDCL 43-4-23). The county checklist asks for “Exempt from Transfer Fee” Pursuant to SDCL 43-4-22 on the face of the instrument. A lawyer or title company can confirm whether your transfer qualifies.

Frequently asked questions

Does South Dakota have a real estate transfer tax?

Yes, but the statute calls it a fee. SDCL 43-4-21 imposes $0.50 for each $500 of value on the privilege of transferring title. That is 0.1% of the value, collected by the county register of deeds.

Who pays the South Dakota transfer fee, the buyer or the seller?

The statute says the grantor pays, so the seller. The purchase contract can allocate costs differently by agreement, but the legal obligation named in the law falls on the grantor.

How do I calculate the fee on my sale?

Divide the declared value by $500, round up to a whole number, and multiply by $0.50. A $400,000 sale gives 800 increments and a $400 fee. Any amount above $400,000 adds another increment.

Is a transfer between family members exempt?

Sometimes. A transfer between spouses, or between parent and child, is exempt if it has only nominal actual consideration (SDCL 43-4-22(5)). An absolute gift between individuals with no consideration is also exempt, whatever the relationship (subdivision 16). A normal sale at market value between relatives is not covered by these two.

Is the fee due on a foreclosure sale?

No. Deeds issued in foreclosure actions or proceedings, sheriffs’ deeds and deeds in lieu of foreclosure are exempt (SDCL 43-4-22(6)). See foreclosure in South Dakota for the process.

Compare with the other states: Real estate transfer tax by state.

More South Dakota guides

Sources

South Dakota · All states · Federal guides