How do I start tax sale investing in South Dakota?

Learn the system first: South Dakota sells tax lien certificates under South Dakota Codified Laws Chapters 10-23 to 10-25 (SDCL 10-23-7, 10-23-8, 10-24-1, 10-25-1). Register with the county or its auction platform before the sale, post any required deposit, research each parcel in the property appraiser and clerk records, and set your max number before bidding.

South Dakota Tax Sale Investing Guide — Buy the tax debt, earn the rate

Investing guides / South Dakota

South Dakota tax sale investing: buy the tax debt, earn the rate

Quick answerSouth Dakota sells tax lien certificates for unpaid property taxes. Lien buyers can earn Up to 10% per year, bid down — the lowest interest rate bid wins and no bid above 10% is valid (SDCL 10-23-8). Redemption: Owner may redeem at any time before a tax deed issues (SDCL 10-24-1). The certificate holder may start tax deed proceedings after 3 years from the certificate sale and within 6 years (SDCL 10-25-1); redemption does not expire until 60 days after the affidavit of completed service of notice of intent to take a tax deed is filed (SDCL 10-25-8). Sales: Annual tax certificate sale on the third Monday in December, 9 a.m.-4 p.m., at the county courthouse (SDCL 10-23-7), where the county holds a sale Governing law: South Dakota Codified Laws Chapters 10-23 to 10-25 (SDCL 10-23-7, 10-23-8, 10-24-1, 10-25-1).

How it works in South Dakota

In South Dakota you are not buying property at the sale — you are buying the county's tax lien certificate for the amount of taxes owed, and the owner owes you interest until they redeem.

Interest / penalty: Up to 10% per year, bid down — the lowest interest rate bid wins and no bid above 10% is valid (SDCL 10-23-8)

Redemption: Owner may redeem at any time before a tax deed issues (SDCL 10-24-1). The certificate holder may start tax deed proceedings after 3 years from the certificate sale and within 6 years (SDCL 10-25-1); redemption does not expire until 60 days after the affidavit of completed service of notice of intent to take a tax deed is filed (SDCL 10-25-8).

When sales happen: Annual tax certificate sale on the third Monday in December, 9 a.m.-4 p.m., at the county courthouse (SDCL 10-23-7), where the county holds a sale

Where sales run: Mostly in-person at the county courthouse, County treasurer sales; no dominant statewide online platform verified

Governing law: South Dakota Codified Laws Chapters 10-23 to 10-25 (SDCL 10-23-7, 10-23-8, 10-24-1, 10-25-1)

The investor's edge

Your edge is rate discipline: know the statutory maximum, know what the sale historically bids down to in your target counties, and set a floor rate you will not cross before the sale starts.

CORRECTION to older guides: current SDCL 10-25-1 sets a single 3-year period to begin deed proceedings (within 6 years) — the pre-amendment 3-year-inside / 4-year-outside a municipality distinction in older case law no longer appears in the current statute text. If no private buyer bids, the county takes the certificate and may later assign it.

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Full legal reference: South Dakota tax sale laws. Verified 2026-10-30 against the sources on that page. Educational only, not investment advice.