Current Governor of South Dakota: Tax Plan, Budget, 2026 Race

The current governor of South Dakota is Larry Rhoden, a Republican rancher from Meade County who became the state’s 34th governor on January 25, 2025, after Kristi Noem resigned to serve as U.S. Secretary of Homeland Security.1Trail of Governors. Governor Larry Rhoden Rhoden is serving out the remainder of Noem’s term and is now in a July 2026 Republican runoff for a full four-year term of his own.

How Rhoden Became Governor

Noem was confirmed by the U.S. Senate as Secretary of Homeland Security on January 25, 2025, and resigned the governorship the same day.2NPR. Kristi Noem Homeland Security Fired Under Article IV of the South Dakota Constitution, when the governor’s office becomes permanently vacant the lieutenant governor succeeds to it.3South Dakota Legislature. South Dakota Constitution, Article IV Rhoden, who had been Noem’s lieutenant governor since 2019 and was re-elected on her ticket in 2022, was sworn in that day.4Office of the Governor. About the Governor

Background Before the Governorship

Rhoden was born February 5, 1959, in Sturgis and grew up on his family’s ranch near Union Center, where both sets of his grandparents had homesteaded.1Trail of Governors. Governor Larry Rhoden He graduated from Sunshine Bible Academy in 1977 and joined the family operation, which over time became a purebred Angus cattle ranch.5Mitchell Republic. Ranching and Branding Are Close to South Dakota Gov. Larry Rhoden’s Heart He served in the South Dakota Army National Guard from 1979 to 1985, and he and his wife Sandy have four sons.

His political career began in 2000. Rhoden served in the South Dakota House from 2001 to 2008, including four years as House Majority Leader, then moved to the state Senate after being term-limited.6Western Governors’ Association. Larry Rhoden7National Governors Association. Larry Rhoden8South Dakota Legislature. Senator Larry Rhoden – Bills He received the American Conservative Union’s highest ranking in 2017.

Rhoden ran for U.S. Senate in the 2014 Republican primary and lost to Mike Rounds.9South Dakota Secretary of State. 2014 Republican Primary Results – United States Senator Four years later he was elected lieutenant governor on Noem’s ticket with roughly 51% of the vote, defeating Democrat Billie Sutton and Libertarian Kurt Evans.10South Dakota Secretary of State. 2018 General Election Results – Governor and Lieutenant Governor

What Rhoden Has Done as Governor

Property Tax Package

On March 12, 2026, Rhoden signed what his office called the largest property tax cut in state history.11South Dakota News. Governor Signs Property Tax Bills The core bill, carried by House Speaker Jon Hansen, raises the state sales tax from 4.2% to 4.5% to generate about $114 million a year for the school funding formula, which in turn lowers school district property taxes. Rhoden’s office projected homeowner property tax reductions of 14 to 22%, averaging $548 on a $325,000 home. A companion bill proposed by Rhoden lets counties add a half-percent sales tax to offset the county share of homeowner property taxes, potentially saving another $660 per home. The state is drawing $56 million from reserves to start the relief before the sales tax increase takes effect.12News From the States. Governor Signs Bills to Reduce Homeowner Property Taxes, Higher Sales Taxes

Budget

Rhoden’s fiscal year 2026 budget totaled $7.44 billion, with $2.51 billion in general funds. Citing weak agricultural commodity prices and uneven sales tax receipts, he proposed no pay raises for roughly 14,200 state employees, no increase in K-12 aid, and no boost to Medicaid reimbursement rates. The budget allocated $13.2 million to staff a new women’s prison opening in Rapid City in 2026, $5 million for a new Highway Patrol aircraft, and $2.4 million to expand the National Guard Readiness Center in Sturgis.13SD News Watch. Gov. Rhoden Budget Legislature Spending Education SD

Future Fund and Economic Development

In Executive Order 2026-03, issued January 15, 2026, Rhoden set new rules for the Future Fund business incentive program. Grants must be disbursed on a reimbursement basis against itemized invoices, matching commitments are required where feasible, and all agreements must be posted on the OpenSD transparency portal.14South Dakota News. Executive Order 2026-03 – Future Fund He later authorized $4 million from the fund for a gunsmithing program at Western Dakota Tech in Rapid City and announced a South Dakota Defense Institute to coordinate work tied to Ellsworth Air Force Base and the B-21 bomber program.15SDPB. Gov. Larry Rhoden Outlines Policy Priorities as Early Voting Approaches in South Dakota

Public Safety and Agriculture

Rhoden signed HB 1084 and HB 1298, which make it a crime to publish personal information about law enforcement officers and judges online with malicious intent. Both take effect July 1, 2026.16South Dakota News. Anti-Doxxing Legislation In March 2026 he signed a package of five bills aimed at rural communities, including an appropriation for broadband infrastructure expansion.17Office of the Governor. Governor of South Dakota – Homepage

The 2026 Race for a Full Term

The Republican primary on June 2, 2026, was a four-way contest among Rhoden, U.S. Representative Dusty Johnson, House Speaker Jon Hansen, and Aberdeen businessman Toby Doeden. South Dakota law requires at least 35% of the vote to win the nomination outright, and no one cleared that bar. Doeden finished first with about 31%, Rhoden second with roughly 25%, Johnson third at 23%, and Hansen fourth at 21%.18News From the States. Doeden and Rhoden Advance to Runoff in Republican Governor Primary; Johnson Falls Third

A runoff between Rhoden and Doeden is scheduled for July 28, 2026; early voting began June 12.19KOTA TV. Early Voting Begins in South Dakota Governor Runoff Rhoden is campaigning on his governing record and what he calls “civility-driven conservative results,” while Doeden is running as an anti-establishment outsider. Several Johnson donors and allies, including entrepreneur Matt Paulson and Representative Taylor Rehfeldt, have shifted to Rhoden; some Hansen supporters have moved toward Doeden over concerns about eminent domain for carbon pipelines.20South Dakota Searchlight. Where Backers of Losing Campaigns Are Shifting Support Ahead of South Dakota’s Governor Runoff Rhoden declined a one-on-one debate invitation, citing what he described as “false claims” by Doeden, a decision Doeden publicly criticized.21Aberdeen Insider. Rhoden Declines Debate Invitations Citing False Claims; Draws Doeden’s Criticism If Doeden wins, Rhoden would be the first sitting governor to lose a primary since Kansas Governor Jeff Colyer in 2018.22The Hill. South Dakota GOP Governor Race Doeden Rhoden Runoff

The runoff winner faces Democrat Dan Ahlers, a former state senator and Dell Rapids businessman who ran unopposed in the Democratic primary, in the November 3, 2026, general election.23Dan Ahlers for Governor. Dan Ahlers for Governor The Republican nominee is expected to be heavily favored given the state’s strong GOP lean.22The Hill. South Dakota GOP Governor Race Doeden Rhoden Runoff