Selling land with back taxes in South Dakota
Yes, you can sell South Dakota land that has back taxes. The unpaid taxes are paid from the sale at closing. What matters is timing, because once the land goes to a tax sale your window gets shorter.
Request an offerHow South Dakota handles unpaid property taxes
South Dakota sells tax lien certificates. An investor pays your overdue taxes and gets a lien with interest. You still own the land, but if the lien is not paid off, you can lose it through the process in the rule below. Paying off the lien, including from a sale, clears it.
The redemption rule in South Dakota: Counties sell tax certificates. Any person can redeem the certificate any time before a tax deed issues. The holder may start tax deed proceedings 3 years after the certificate sale. The deed notice gives 60 days after service to redeem. Since February 12, 2024, land taken by tax deed must be offered for sale within one year. Any surplus after taxes and costs goes to the prior owner of record, or to unclaimed property after 180 days.
Law: SDCL 10-24-1, 10-25-1, 10-25-2, 10-25-39, 10-25-39.1, 10-25-39.2. Rules change, so confirm with the county tax collector.
What to do before the tax sale
- Call the county tax office and get the exact amount owed and the next sale date.
- Decide whether you want to keep the land. If not, selling before the sale stops the interest and penalties from growing.
- Gather the parcel number and any tax bills. A buyer and the title company need them to order a payoff.
South Dakota land at a glance
- Average farm real estate value: $3,100 per acre (2026, USDA).
- Average property tax on farmland: about $7.57 per acre per year (2022 Census of Agriculture).
- Transfer tax: A real estate transfer fee of 50 cents per $500 of value or fraction (0.1%). Exemptions in SDCL 43-4-22 include gifts and some family transfers.
- Seller disclosure: Vacant land is not covered. South Dakota's required property condition disclosure applies to residential real property of not more than four dwelling units in one structure.
These are statewide averages, not an appraisal. See selling land in South Dakota for county values, or try the land value estimator.
How a cash sale handles this
Liberty Acres is a family-owned cash land buyer. We buy land anywhere in the US, in any condition, including land with back taxes, inherited land and land with no road access. We pay back taxes and all closing costs, use no agents and charge no commissions, and close through a title company, escrow company or real estate attorney who pays you by wire or check.
Common questions
Can I sell my land in South Dakota if I owe back taxes?
Yes. The back taxes are paid from the sale at closing through the title company. Liberty Acres pays back taxes and all closing costs.
How long do I have to redeem land after a tax sale in South Dakota?
Counties sell tax certificates. Any person can redeem the certificate any time before a tax deed issues. The holder may start tax deed proceedings 3 years after the certificate sale. The deed notice gives 60 days after service to redeem. Since February 12, 2024, land taken by tax deed must be offered for sale within one year. Any surplus after taxes and costs goes to the prior owner of record, or to unclaimed property after 180 days.
Can I still sell after the tax sale?
It depends on the South Dakota rule above. If the law gives a redemption period after the sale, you can redeem or sell during it, but the payoff grows and title work gets harder. If it does not, your ownership ends when redemption ends, so sell before then.
Sources
- South Dakota tax sale law: SDCL 10-24-1, 10-25-1, 10-25-2, 10-25-39, 10-25-39.1, 10-25-39.2
- USDA NASS Land Values 2026 and 2022 Census of Agriculture
State rules last checked 2026-10-13. This is general information, not legal or tax advice. Rules vary by state, so talk to a local attorney or CPA about your situation.