6 Towns Perfect For Retirement In South Dakota
WalletHub ranks South Dakota as the 7th best place to retire for 2023 and the facts bear this out. The Mount Rushmore State does not maintain an income tax, maintains a low sales tax rate, and exempts all retirement income from taxation. Therefore, if scoping for a budget-friendly venue, South Dakota should be on the tabs. And then the buffaloes, the Back Hills, and the wide-open skies. Plus, you never met folks who are ever so warm, sincere, and down to earth. If you are looking to spend your golden years in Mount Rushmore State, discover the six towns below that are perfect for retirement in South Dakota.
Hill City
One of the things that enhances Hill City’s retirement allure is its proximity to Rapid City, the second most populous city in South Dakota after Sioux Falls. A retiree here will just be 30 minutes away from all the amenities, conveniences, and cultural attractions of “the "City of Presidents," as Rapid City is nicknamed. In a medical emergency, one will be in the waiting room of reputable hospitals such as the highly-ranked Same Day Surgery Center in just half an hour or less. Enveloped in the austere grandeur of the Black Hills, Hill City provides access to fantastic outdoor venues such as Major Lake, Spring Creek, and Newton Fork. At the Prairie Berry Winery, one can laugh at the pranks life has thrown on the way — a glass of handcrafted wine in hand. Alternatively, on a lazy afternoon, there is the chance to saddle a horse and enjoy an elevated view of the Black Hills at the Stables at Palmer Gulch. Hill City’s median age is 40, and folks aged 60 and above comprise 21% of the population. The median listing home price in Hill City was $637,500 in March 2024.
Madison
A buzzy town of about 6,000 residents, Madison hosts Dakota State University, making it appealing to retirees who love an academic environment. For perspective, seniors at least 65 qualify for a reduced tuition rate at the university. Madison is about 50 miles northwest of Sioux Falls and was originally laid on Lake Madison before being relocated to its current site. Still, Lake Madison is among the town’s defining attractions and will entice retirees who want easy access to a sparkling body of water. Madison is also relatively affordable. Homes here fetch a median listing price of just 323,400. There is Lake Herman — and Lake Herman State Park — where residents love to camp, boat, and catch walleye. Walker's Point State Recreation Area can also come in handy, especially if you are looking for an excellent camping spot. While the town’s median age is a bubbly 37 (thanks partly to the university), residents aged 60 and above comprise 28% of the population. An empty nester here can easily link up with folks in the same age bracket. And Madison Regional Health System is right in town for those concerned about healthcare access.
Milbank
With a home median listing price of just $224,500, Milbank's affordability is hard to beat. The town is tucked away in northeastern South Dakota on the South Fork Whetstone River, a tributary of the Minnesota River. It is just 10 miles west of the Minnesota border. While Milbank owes its start to the railroad, today, it is best known as the birthplace of American Legion Baseball. A granite monument on the corner of "Unity Square” celebrates this rich legacy. A retiree here will access fantastic outdoor sites such as Lake Farley Park, a splendid park with a beautiful lake view. The park has a track suitable for walking, biking, or running. Avid golfers, on the other hand, will love the presence of Whetstone Creek Golf Course, a nice public course known to be affordable and well-maintained. Big Stone Lake — and Hartford Beach State Park — are also nearby and provide a world of outdoor fun and adventure opportunities. If one needs urgent medical attention, Milbank Area Health Care Campus is right in town and boasts an impressive 80% recommendation rate. Finally, Milbank’s median age is a calm and tepid 42. In a similar vein, residents aged 60 and above comprise 33% of the population.
Hot Springs
A glance at the median age of Hot Springs — which stands at 56.3 — immediately reveals that it is among the most perfect towns for retirement in South Dakota. Empty nesters aged 60 and above comprise a whopping 44% of the population. Evidently, the social support here is top-notch. If under the weather, facilities such as Fall River Health Services eliminate the need for an out-of-town trip. Plus, homes here fetch a median listing price of $390,000, which is relatively affordable. But it is what Hot Springs offers that sets it apart. There is the Angostura Reservoir nearby — and the adjoining Angostura State Recreation Area — which boasts some of the finest sandy beaches in the state. Hot Springs is home to The Mammoth Site as well, one of the top fossil interpretive sites in North America and the world's largest mammoth research facility. Then, there are the Evans Plunge Mineral Springs, which feature naturally warm mineral water from a thermal spring. As if that is not enough, the Upper Chautauqua Park, which provides access to the Fall River, is a stone's throw from the downtown area.
Miller
Miller is nestled in an area that offers some of the best hunting and fishing in the entire central U.S. However, retirees will fall in love with this family-like community because homes here fetch a median listing price of just 165,000. At this unbeatable price point, an empty nester will have access to Avera Hand County Memorial Hospital, which has served residents in the area since 1947. Another indicator that Miller appeals to retirees is the fact that its median age is 49. In a similar vein, residents aged 60 and above comprise 34% of the population. Outdoor adventure venues include Miller Country Club, which features a 9-hole golf course, the nearby Lake Louise Recreational Area and Wildlife Refuge, an angler’s dream venue, and Crystal Park Disc Golf Course, which dabbles as a sleek camping site.
Dakota Dunes
A photogenic master-planned community just 7 miles from downtown Sioux City, Iowa, Dakota Dunes rounds off the list of the six towns perfect for retirement in South Dakota. One of the greatest appeals to retiring in Dakota Dunes is the convenient access to big-city amenities, including hospitals and shopping venues. That said, Dunes Surgical Hospital is right in town and has received the Outstanding Patient Experience Award for three consecutive years. Also, the town’s median age is 41, and residents aged 60 and above comprise 25% of the population, meaning 1 in 4 residents is likely to be a fellow empty nester. A retiree here will enjoy convenient access to splendid outdoor venues, including the scenic Stone State Park across the border in Iowa (it features many miles of hiking and equestrian trails) and Dorothy Pecaut Nature Center, a lovely outdoor space perfect for those who want to decompress. There is also the Missouri River, the breathtaking Dakota Dunes Country Club, and the Dakota Dunes Dog Park, where a furry friend will want to socialize and enjoy the sun.
The Takeaway
South Dakota’s beauty is largely unknown and underappreciated. The Mount Rushmore State — contrary to what many may imagine — is not plain or dull. The Badlands, Spearfish Canyon, and the western Black Hills region provide a glimpse into the state’s mind-bending beauty. But it is not just natural beauty. South Dakota is also easy on the wallet. For instance, it exempts all retirement income from taxation. Then again, South Dakota is star-studded with charming towns such as Hill City, Madison, Milbank, and Hot Springs — which offer amenities most seniors prioritize, including healthcare access, and hence, are among the perfect towns for retirement in South Dakota.
