Social Security in South Dakota: 2027 COLA, Average Benefit, SSI & Taxes
South Dakota by the numbers
| Measure | South Dakota |
|---|---|
| Average retired-worker benefit (Dec 2024) | $1,919/mo |
| Estimated 2027 average after the 3.6% COLA | about $1,988/mo |
| Rank by average benefit (50 states + DC) | #41 of 51 |
| Retired workers receiving benefits | 161,231 |
| All Social Security beneficiaries in South Dakota | 201,259 |
| Total benefits paid in South Dakota, 2024 (all programs) | $4.2 billion |
Source: SSA Annual Statistical Supplement 2025, Tables 5.J1, 5.J2 and 5.J4 (December 2024). The average is total retired-worker benefits divided by the number of retired workers; the 2027 figure applies the 3.6% COLA to that average and is an estimate — individual benefits vary widely around it. National comparison and every other state: Social Security by state.
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SSI in South Dakota
Administered by the Social Security Administration. South Dakota's supplement is federally administered, so it arrives in the same payment as your federal SSI — no separate application and no separate check.
Amount: South Dakota's optional supplements target residents of licensed adult foster homes and assisted living facilities, plus a small flat payment for certain recipients with no other income. SSA does not publish a single current standard amount for South Dakota — check the exact figure with the South Dakota Department of Social Services.
The federal part is the same everywhere: a 2027 maximum of $1,029 (individual) / $1,544 (couple), first increased payment December 31, 2026. Federal amounts by living arrangement are on the SSI calculator and dates on the SSI payment schedule.
Does South Dakota tax Social Security benefits?
No. South Dakota has no broad state income tax, so Social Security benefits are not taxed at the state level. (Federal taxation can still apply — up to 85% of benefits, based on combined income.)
Good to know in South Dakota
Administration is split in South Dakota: the SSA administers the state's mandatory supplementary payments, while the state Department of Social Services runs the optional supplements for residents of licensed adult foster homes and assisted living facilities, plus a small flat payment for certain recipients with no other income.
Frequently asked questions
What is the average Social Security benefit in South Dakota?
$1,919 a month for a retired worker, from the SSA's December 2024 data — ranked #41 of the 50 states and DC. With the 3.6% COLA the 2027 average is about $1,988. An average reflects a lifetime of earnings and claiming ages in the state; your own amount depends on your record.
Does South Dakota tax Social Security benefits?
No. South Dakota has no broad state income tax, so benefits are not taxed by the state.
Does South Dakota add a supplement to SSI?
Yes, mainly for residents of adult foster homes and assisted living facilities. The SSA administers South Dakota's mandatory payments and the state runs the optional supplements; SSA publishes no single standard amount.
When does the 2027 COLA arrive in South Dakota?
On the same federal schedule as everywhere else — the COLA does not vary by state. SSI's first increased payment arrives December 31, 2026, and Social Security's January 2027 payments arrive on the usual birth-date Wednesdays (January 13, 20 and 27), with exact amounts in your December COLA notice.
Sources: SSA Annual Statistical Supplement 2025 (§5.J state tables); SSA SSI state supplementation tables and A Guide to SSI for Groups and Organizations (Jan 2026); South Dakota revenue-department rules as published for the most recent tax year. Benefit figures are estimates; your SSA notice is the official amount.