Cost of Living in South Dakota — Housing, Taxes & Everyday Expenses
No income tax, very affordable, Mount Rushmore country
Data: 2026-Q2 · BLS · HUD · KFFOverview
South Dakota has no state income tax and very affordable housing. Sioux Falls is a growing financial services hub — many credit card companies are incorporated here.
Housing costs
Median 1BR rent in Sioux Falls is approximately $950-$1,050. Rapid City is similar.
Tax reality
South Dakota has no state income tax.
South Dakota has no state income tax — a meaningful boost to take-home pay versus high-tax states.
Everyday expenses
At a cost of living index of 96, South Dakota is about 4% cheaper than the national average of 100. South Dakota's no income tax and very affordable housing provide excellent purchasing power.
Salary reality in South Dakota
Cost of Living in South Dakota — FAQ
Does South Dakota have a state income tax?
No. South Dakota has no state income tax.
Is South Dakota affordable?
Yes. South Dakota has a cost of living index of 96, slightly below the national average.