VA Survivor Benefits in South Dakota: DIC, Burial Allowances, and Veteran Property Tax Exemptions

The survivors of South Dakota veterans are entitled to a stack of federal and state benefits that compound in ways most families don't realize. Federal VA benefits provide the largest monthly income, but South Dakota's state-level veteran property tax exemptions can eliminate or dramatically reduce property tax bills that would otherwise consume a surviving spouse's fixed income.

Here's what's available, what it pays, and how to claim it.

Dependency and Indemnity Compensation (DIC): The Core Monthly Benefit

DIC is the VA's primary monthly income benefit for surviving spouses of veterans who died from service-connected causes. It requires no income test, is completely tax-exempt at both the federal and state levels, and can be received alongside Social Security survivor benefits.

2026 DIC Monthly Rates:

A surviving spouse with two dependent children and Aid and Attendance could receive over $2,963 per month in tax-free VA DIC payments in 2026. These rates adjust annually with the cost-of-living adjustment (COLA).

Who qualifies for DIC:

• The veteran must have died from a service-connected disability, OR
• The veteran must have been rated totally and permanently disabled for the 10 years before death (or 5 years from discharge if continuous), OR
• The death occurred while the veteran was on active duty
• The surviving spouse must have been legally married to the veteran at the time of death (or for at least one year before death)

Surviving children under 18, or children under 23 attending school, can also receive DIC independently if there is no surviving spouse.

Survivors Pension: For Low-Income Surviving Spouses

If the veteran's death was not service-connected, the surviving spouse may still qualify for VA Survivors Pension (formerly called "Death Pension"). This is an income-tested monthly payment for surviving spouses and dependent children of wartime veterans who meet financial need requirements.

Income limits for Survivors Pension adjust annually. Contact the VA or a Veterans Service Organization (VSO) to determine whether your household income qualifies.

VA Burial Allowances

The VA also provides one-time burial allowances:

• Service-connected death: Up to $2,000 burial allowance (for deaths on or after September 11, 2001)
• Non-service-connected death in a VA facility: Up to $978 burial allowance
• Non-service-connected death (receiving VA compensation or pension): Up to $978 burial allowance
• Plot allowance: Up to $978 for burial in a private cemetery if the veteran is not buried in a national cemetery
• National cemetery transportation: Some or all transportation costs reimbursed for burial in a VA national cemetery

Apply using VA Form 21P-530EZ (Application for Burial Benefits) within two years of the burial date.

South Dakota State Property Tax Exemptions for Veteran Survivors

Beyond federal VA benefits, South Dakota provides two powerful property tax exemptions specifically for surviving spouses of veterans.

Exemption for Unremarried Spouse of a Totally Disabled Veteran

If your veteran was rated permanently and totally disabled from a service-connected condition, you as the unremarried surviving spouse can exempt up to $200,000 of your property's assessed value from South Dakota property taxation.

For a home assessed at $250,000, this exemption would eliminate taxes on $200,000 of the value — reducing your property tax bill by 80%.

Full Exemption for Unremarried Spouse of a Paraplegic Veteran

If your veteran was paraplegic, or if your home was specifically designed or substantially modified for wheelchair use (whether the veteran was classified as paraplegic or not), you qualify for a complete exemption from all South Dakota property taxes.

Both exemptions require the surviving spouse to remain unmarried. Remarriage terminates the exemption.

Application: File Form PT46a (for totally disabled veteran) or Form PT46c (for paraplegic veteran) with your county assessor by November 1st annually.

Applying for Federal VA Benefits

VA survivor benefit claims are filed through:

• VA.gov (online application available for DIC)
• VA Form 21P-534EZ (Application for DIC, Death Pension, and/or Accrued Benefits)
• Your local Veterans Service Organization (VSO) — American Legion, VFW, and DAV all have SD chapters that provide free claims assistance and can help you navigate the process

South Dakota has no state-specific VA benefit beyond the property tax exemptions — all monthly income benefits (DIC, Survivors Pension) are federal programs administered through the regional VA office.

Combining VA Benefits with South Dakota Benefits

DIC and Survivors Pension do not preclude receiving other South Dakota survivor benefits simultaneously. You can collect:

• Federal DIC payments (tax-free)
• South Dakota property tax exemptions (eliminating annual property tax liability)
• Social Security survivor benefits (separate federal program)
• SDRS survivor pension if the veteran also worked in South Dakota public employment

For a complete picture of all benefits available to surviving spouses in South Dakota — including the specific claim forms and deadlines for each program — the South Dakota Survivor Benefits Navigator provides a sequenced checklist tailored to South Dakota law.

See more South Dakota guides →