South Dakota Cost of Living Calculator 2026

Compare cost of living in South Dakota to other US states and cities. See equivalent salary needed when relocating.

By Konstantin Iakovlev · Updated October 19, 2026 · Methodology

$

Equivalent Salary Needed

$80,180.18

Difference

-$19,819.82

Cost Difference

-19.82%

Cost of Living Comparison

Austin, TX Index111
Sioux Falls, SD Index89
National Average100
Your Current Salary$100,000.00
Equivalent in Sioux Falls, SD$80,180.18
You would need less$19,819.82

Breakdown by Category (Annual)

Housing-33.33%
Current (Austin, TX)$40,000.00
Target (Sioux Falls, SD)$26,666.67
Food & Groceries-3.00%
Current (Austin, TX)$15,000.00
Target (Sioux Falls, SD)$14,550.00
Transportation-11.00%
Current (Austin, TX)$15,000.00
Target (Sioux Falls, SD)$13,350.00
Healthcare-0.95%
Current (Austin, TX)$10,000.00
Target (Sioux Falls, SD)$9,904.76

Cost of living indices are approximate and based on aggregate data. Individual expenses may vary significantly. Housing costs tend to have the largest impact when moving between cities.

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.

South Dakota Cost of Living Overview

Understanding the cost of living in South Dakota means looking at taxes, housing, and everyday expenses together. South Dakota has no state income tax, which can significantly boost take-home pay compared to states that do. The average property tax rate is 1.00%, and the state sales tax rate is 4.20%.

South Dakota's cost of living is shaped by a distinctive tax mix: no personal income tax at all, a moderate 4.2% state sales tax that broadens with local add-ons, and property tax averaging about 1.00% of home value, a touch above the national norm. The absence of an income tax means a paycheck keeps its full state value, so the salary side of a budget is clean. The trade-off shows up in the sales tax, which reaches many services and most groceries, and in property tax, which carries more of the local funding load than it does in income-tax states. Housing costs in much of the state remain reasonable, though Sioux Falls and the Black Hills area have grown pricier.

Comparing salaries between South Dakota cities means looking past the headline pay number, since the pay side barely moves. A $70,000 offer in Sioux Falls and the same offer in a smaller town both escape state income tax entirely, so they start even. Where they diverge is housing prices, the local sales tax add-on that sets the combined rate at checkout, and the county and city property levies that drive the annual tax on a home. Because there is no local income tax either, the real differences between two South Dakota cities are almost entirely on the cost side: rent, home values, and local levies.

South Dakota Cost Snapshot (2026)

Avg. Property Tax Rate 1.00%
State Sales Tax Rate 4.20%
Minimum Wage $11.85/hr
State Income Tax No state income tax
State Disability Insurance (SDI) No
Estate / Inheritance Tax No
Local/City Taxes Municipal sales tax up to 2% (plus a possible 1% municipal gross receipts tax)

City indexes (U.S. average = 100) are planning estimates on one scale. The 29 cities added in August 2026 were reconciled from BestPlaces city pages, the Payscale and RentCafe cost-of-living calculators (both built on the C2ER Cost of Living Index) and the MERIC state index for Q1 2026; the original 30 large metros date from April 2026 and have not been re-checked since. Local rents and home prices can differ a lot within a metro, and the equivalent salary does not account for income taxes.

Official Sources:

South Dakota Cost of Living FAQ

Is South Dakota an expensive state to live in?
South Dakota generally lands near or a bit below the national average on overall cost of living, helped by no state income tax and reasonable housing in much of the state. The pressure points are sales tax, which is broad and applies to groceries and many services at 4.2% before local add-ons, and property tax averaging about 1.00% of home value. Renters feel the property tax only indirectly, while homeowners see it as a recurring annual cost.
How do South Dakota's taxes affect a household budget?
With no income tax, the two taxes that shape a South Dakota budget are the 4.2% sales tax, which can climb above that with municipal add-ons and applies to most goods and many services, and the property tax averaging 1.00% of a home's value. For homeowners, property tax is often the heaviest line and shows up as an escrow item. Day-to-day spending carries the sales tax, including on groceries, which are taxable here unlike in several neighboring states.
How should I compare a salary between two South Dakota cities?
Because there is no state or local income tax, the pay side is consistent statewide, so two equal salaries start even. The variables are housing cost, the municipal sales tax add-on that sets the combined checkout rate, and the local property levy that drives the annual tax on a home. After factoring in rent or home prices and those local levies, two identical offers can leave noticeably different amounts of discretionary income.
Does the lack of an income tax make South Dakota cheaper overall?
It helps the salary side meaningfully, since wages, retirement income, and capital gains all avoid state tax, leaving more of each paycheck intact. But the state recovers revenue elsewhere: a broad 4.2% sales tax that reaches groceries and services, plus property taxes above the national average. Whether South Dakota is cheaper for you depends on how much you spend on taxable goods and how much you own in property, not just the absent income tax.

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