South Dakota vs North Dakota: Tax & Cost Comparison
2026Side-by-side South Dakota vs North Dakota comparison: state income tax, sales tax, property tax, cost of living, and minimum wage for 2026. Dakotas pair — SD's no income tax + reliance on sales tax against ND's low progressive (1.95%-2.5% top) + Bakken oil-tax revenue.
Written and reviewed by Konstantin Iakovlev · Methodology · Updated
Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.
| Tax / Cost Factor | South Dakota | North Dakota |
|---|---|---|
| State income tax (top rate) | None | 1.95% (flat) |
| State sales tax | 4.20% | 5.00% |
| Avg. effective property tax | 1.14% | 0.98% |
| Minimum wage (2026) | $11.85/hr | $7.25/hr |
| State Disability Insurance (SDI) | No | No |
| Paid Family Leave | No | No |
| Median home price (Q4 2025) | $295,000 | $280,000 |
| Foreclosure type | mixed | mixed |
| BEA Regional Price Parity (2024) | 92.4 | 93.7 |
| Median household income (2024) | $70,850 | $75,000 |
| Median 2-bedroom rent (Q4 2025) | $1,180/mo | $1,310/mo |
Worked example: $75,000 single filer, 2026
For a single filer earning $75,000 in 2026, the rough state-tax burden comparison:
- South Dakota: estimated state income tax $0 (no state income tax), plus federal income tax (≈ $7,300 at 22% marginal), FICA $5,738, sales tax 4.20% on consumption.
- North Dakota: estimated state income tax ≈ $1,024, plus federal $7,300, FICA $5,738, sales tax 5.00% on consumption.
Property tax depends entirely on home value. On a $400,000 home: South Dakota ≈ $$4,560/year; North Dakota ≈ $$3,920/year.
Why this comparison? Dakotas pair — SD's no income tax + reliance on sales tax against ND's low progressive (1.95%-2.5% top) + Bakken oil-tax revenue.
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South Dakota
Frequently asked questions
Which is cheaper to live in: South Dakota or North Dakota?
By BEA Regional Price Parity (2024), South Dakota has a cost-of-living index of 92.4 and North Dakota is 93.7 (US average = 100). Median household income: South Dakota $70,850, North Dakota $75,000. Median 2-bedroom rent: South Dakota $1,180/mo, North Dakota $1,310/mo. South Dakota is the lower-cost state by this measure.
Does South Dakota or North Dakota have lower income tax in 2026?
South Dakota has no state income tax; North Dakota has a top rate of 1.95%. South Dakota is the clearly lower-income-tax state.
What about property taxes in South Dakota vs North Dakota?
South Dakota's average effective property tax rate is 1.14% (e.g., $4,560/year on a $400,000 home). North Dakota's rate is 0.98% ($3,920/year on $400K). North Dakota has the lower property tax burden.
Where is the minimum wage higher: South Dakota or North Dakota?
South Dakota's 2026 minimum wage is $11.50/hour; North Dakota's is $7.25/hour. South Dakota is higher.