Where state taxes goSouth Dakota, fiscal 2023
Where do my state taxes go in South Dakota?
Of every dollar South Dakota's state government spends, 31¢ goes to education and 25¢ to public welfare.$6.5 billion of general spending in fiscal year 2023 (July 2022 to June 2023): $7,131 per resident, 46th highest of the 50 states. 41% of the money came from the federal government.
Where the money goes
General spending rose 7.0% on fiscal 2022 ($6.1 billion). The table under the chart has each function per resident, its rank and its change.
Education and public welfare take 57% of South Dakota's spending
State government general expenditure by function, fiscal year 2023 (July 2022 to June 2023). Small print: the share in all 50 states combined.
| Function | Spending | Share |
|---|---|---|
| Education 32% in all states | $2.0B | 31.2% |
| Public welfare 36% in all states | $1.7B | 25.5% |
| Highways 6% in all states | $904.6M | 13.8% |
| Other 9% in all states | $597.0M | 9.1% |
| Government administration 4% in all states | $393.7M | 6.0% |
| Natural resources 1% in all states | $325.9M | 5.0% |
| Prisons and corrections 2% in all states | $167.4M | 2.6% |
| Public health 3% in all states | $135.4M | 2.1% |
| Interest on debt 1% in all states | $120.5M | 1.8% |
| State police 1% in all states | $68.5M | 1.0% |
| Parks and recreation 0% in all states | $62.3M | 1.0% |
| Hospitals 5% in all states | $56.6M | 0.9% |
Per resident, rank and change for every function
| Function | South Dakota per resident | All states per resident | Rank (1 = most) | Change since 2022 |
|---|---|---|---|---|
| Education | $2,228 | $2,787 | 45 of 50 | +11% |
| Public welfare | $1,817 | $3,193 | 48 of 50 | -2% |
| Hospitals | $62 | $408 | 45 of 50 | +15% |
| Public health | $148 | $288 | 41 of 50 | -3% |
| Highways | $986 | $534 | 5 of 50 | +12% |
| State police | $75 | $74 | 21 of 50 | +6% |
| Prisons and corrections | $182 | $197 | 28 of 50 | +13% |
| Natural resources | $355 | $112 | 3 of 50 | +63% |
| Parks and recreation | $68 | $29 | 4 of 50 | +8% |
| Government administration | $429 | $321 | 17 of 50 | -5% |
| Interest on debt | $131 | $109 | 19 of 50 | +2% |
| Other | $651 | $782 | 30 of 50 | +3% |
U.S. Census Bureau, Annual Survey of State Government Finances, 2023.
On your state tax bill
Your state taxes split in proportion to South Dakota's 2023 general spending. State spending is funded by taxes, federal funds and fees together, so this shows how a tax dollar divides, not which dollar pays for what.
| Goes to | Of $1,000 | Of $2,500 | Of $5,000 |
|---|---|---|---|
| Education | $312 | $781 | $1,562 |
| Public welfare | $255 | $637 | $1,274 |
| Highways | $138 | $346 | $691 |
| Other | $91 | $228 | $456 |
| Government administration | $60 | $150 | $301 |
| Everything else | $143 | $358 | $716 |
Where the money comes from
The Census Bureau records no individual income tax revenue for South Dakota in fiscal 2023; its largest tax was the general sales tax ($1.7 billion).
Federal funds are South Dakota's largest source of general revenue
State government general revenue by source, fiscal year 2023 (July 2022 to June 2023)
| Source | Revenue | Share |
|---|---|---|
| Federal funds | $2.6B | 41.0% |
| General sales tax | $1.7B | 26.7% |
| Interest, lottery and other | $721.0M | 11.5% |
| Selective sales taxes (fuel, tobacco, alcohol, insurance) | $548.0M | 8.7% |
| Charges and fees (tuition, hospitals, tolls) | $354.2M | 5.6% |
| Licenses (vehicles, businesses, hunting) | $348.1M | 5.5% |
| Corporate income tax | $48.1M | 0.8% |
| Other taxes (severance, estate and others) | $6.7M | 0.1% |
U.S. Census Bureau, Annual Survey of State Government Finances, 2023.
Federal money and South Dakota
Federal taxes paid by South Dakota residents and businesses: how much federal tax South Dakota pays. Federal spending in the state: federal money in South Dakota. For federal taxes, see where your federal taxes go.
Questions and answers
- Where do my state taxes go in South Dakota?
- Of every dollar South Dakota's state government spent in fiscal year 2023 (July 2022 to June 2023), 31¢ went to education, 25¢ to public welfare and 14¢ to highways. Total general spending was $6.5 billion.
- How much does South Dakota spend per person?
- $7,131 per resident in fiscal 2023, 46th highest of the 50 states (all states together: $8,834).
- How much of South Dakota's budget comes from the federal government?
- 41% of general revenue ($2.6 billion) in fiscal 2023 came from the federal government, the largest part for Medicaid. By that share South Dakota ranks 14th of the 50 states (1st = most reliant). Taxes were 42%.
- Does South Dakota have a state income tax?
- The Census Bureau records no individual income tax revenue for South Dakota in fiscal 2023; its largest tax was the general sales tax ($1.7 billion).
- How much does South Dakota spend on education and Medicaid?
- Education $2.0 billion (31%) and public welfare, mostly Medicaid, $1.7 billion (25%) in fiscal 2023. Education spending includes aid to local school districts, which then add their own property-tax money.
- How much debt does South Dakota's state government have?
- $4.1 billion at the end of fiscal 2023, $4,508 per resident. Local governments' debt is separate.
Other states
- Iowa$8,415 per resident
- Nebraska$7,574 per resident
- North Dakota$11,780 per resident
- Wyoming$9,929 per resident
- Colorado$7,272 per resident
- Indiana$7,491 per resident
Sources and notes
- U.S. Census Bureau, Annual Survey of State Government Finances, "ASFIN State Totals" tables for 2022 and 2023 (Last Revised: September 16, 2025). Thousands of dollars in the source. Public domain.
- General expenditure is the state government's spending excluding its utilities, liquor stores and insurance trust funds (state employee pensions and unemployment benefits). It includes aid passed to local governments.
- Fiscal years end on 30 June in 46 states; New York (31 March), Texas (31 August), and Alabama and Michigan (30 September) differ.
- Population: U.S. Census Bureau, Vintage 2025 estimates, July 2023.