State profile
South Dakota Cost of Living Comparison
South Dakota's 2024 price level is 88.586, sixth-lowest of 51, and its price-adjusted income ranks fifth, 16.8% above the U.S. figure; the state levies no individual income tax.
Updated
88.586South Dakota all-items price level, U.S. = 100 · rank 6 of 51, lowest first
| Measure | South Dakota | Alabama | First − second |
|---|---|---|---|
| All-items price level | 88.586 | 88.823 | −0.237 points |
| Rent price level | 67.642 | 61.785 | +5.857 points |
| Home value | $257,400±$3,051 | $209,900±$1,076 | +$47,500 |
| Two-bedroom gross rent | $987±$15 | $960±$10 | +$27 |
| Household income | $75,081±$888 | $63,999±$399 | +$11,082 |
| Real estate taxes paid | $2,724±$28 | $788±$6 | +$1,936 |
$4,000 of monthly spending in South Dakota scales to $4,011 in Alabama at the 2024 all-items price ratio.
BEA 2024 and ACS 2020–2024; ± marks the Census 90% margin. How to read a gap
South Dakota: no income tax, cheap services, high real income
South Dakota pairs low prices with strong purchasing power. Real per capita personal income, adjusted for the state's prices, is $69,153, rank 5 of 51. The median household income of $75,081 ranks only 31st, so lower prices do much of the work.
Services are especially cheap: other services, at 91.899, rank second-lowest in the country, rents (67.642) ninth and goods (95.473) 11th. The two-bedroom gross-rent median of $987 ranks 44th, and renters spend 25.9% of income on gross rent, the second-lowest share anywhere.
The state finances itself through sales. South Dakota does not impose a state income tax on individuals, according to its Department of Revenue, and Census records no state property tax. General sales supplied 61.6% of fiscal 2025 collections, other selective sales 14.1% and licenses 14.0%. Total collections were $2,874 per resident, rank 46. Owners paid a median $2,724 a year in local real estate taxes, rank 27, on homes with a median value of $257,400.
The relative price level fell from 91.320 in 2020 to 87.851 in 2022 and has since edged up to 88.586, a net decline of 2.734 points.
Six neighbours surround South Dakota. Minnesota is the dear one at 98.621, with a two-bedroom median of $1,356, or $369 a month more; Montana (94.645) and Wyoming (92.691) are also pricier. Nebraska (90.103) and North Dakota (88.959) are close, and Iowa (87.762) slightly cheaper. Alabama (88.823) is the nearest price level nationally.
Category price levels in South Dakota
| Category | Parity | Rank, low first | vs U.S. |
|---|---|---|---|
| All items | 88.586 | 6 | 11.41% below |
| Goods | 95.473 | 11 | 4.53% below |
| Housing (rents) | 67.642 | 9 | 32.36% below |
| Utilities | 79.651 | 15 | 20.35% below |
| Other services | 91.899 | 2 | 8.10% below |
| Real income per person, 2017 $ | $69,153 | 5 | U.S. $59,195 |
All items by year: 2020 91.320 · 2021 90.105 · 2022 87.851 · 2023 88.149 · 2024 88.586 (−2.734 since 2020). How to read categories and trends
Monthly housing costs
- Owners with a mortgage
- $1,680±$15 · rank 35, high first
- Owners without a mortgage
- $617±$7 · rank 25
- Renters: gross rent / income
- 25.9%±0.6 · rank 50
South Dakota state tax collections, FY2025
$2.69 billion in total, $2,874 per resident. Scope of these figures
| Tax | FY2025 | Share | Per resident |
|---|---|---|---|
| Individual income | not levied | ||
| General sales | $1.65 billion | 61.6% | $1,769 |
| Property | not levied | ||
| Motor fuel | $200.3 million | 7.5% | $214 |
| Other selective sales | $379.4 million | 14.1% | $406 |
| Corporate income | $59.9 million | 2.2% | $64 |
| Licenses | $377.4 million | 14.0% | $404 |
| Severance | $14.7 million | 0.5% | $16 |
| Other taxes | $1.2 million | 0.0% | $1 |
South Dakota income tax on wages
South Dakota does not impose a state income tax on individuals, according to the South Dakota Department of Revenue.
Read : South Dakota Department of Revenue. Price parities exclude income taxes.
South Dakota beside its neighbours
Before you budget a move
A South Dakota budget should include actual housing quotes alongside the household’s prepared annual taxes and other obligations. Price levels are a separate issue from tax treatment. Enter actual annual compensation, benefits and recurring expenses so a zero in one tax category does not become an assumption of zero overall cost.
For Sioux Falls-area or another destination, gather a full-year lease and the proposed travel plan. A statewide median home value cannot specify a particular listing or lender payment. If an employer provides accommodation, separate the value of that benefit from the cash rent the household will actually pay.
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