Cost of Living in South Dakota

South Dakota has no state income tax and no corporate income tax and is considered by some to be one of the top tax-friendly states in the United States! This means that if you work in South Dakota, your paycheck will be free of taxes other than the federal income taxes. If you are retired, South Dakota does not tax any form of retirement income including Social Security benefits, offering a big advantage in having an affordable cost of living. South Dakota’s tax rates will make your take-home pay higher and provide more income for the basic cost of living purchases. South Dakota does, however, have a state and local combined 7.1% sales tax. The property taxes in South Dakota are higher than other low tax-friendly states, but overall South Dakota has a lot to offer as a tax-friendly state. ( 2023-07-25 salary.com )

The largest contributor to any cost of living estimate is housing. In South Dakota, the cost of renting a home could be about the same as purchasing one, but may still be the better overall option for you. Renting generally has fewer up-front costs. If you hate the idea of having to spend time or money on yard maintenance, renting could be a better fit for you. Utilities are often included as part of the rent and may help to reduce your energy budget. Renting may also offer on-site amenities like a fitness center, pool, play area or tennis courts that would be out of reach if you were to purchase a home. Wrapping those expenses into your rent could potentially leave you with more disposable income and a lower cost of living. Renting can give you a chance to experience a new location before making the major commitment of buying a home. ( 2023-07-25 salary.com )

South Dakota is ranked number 25 out of all states in overall healthcare access and affordability. Healthcare costs make up a significant part of the cost of living. The ability to afford healthcare as well as the ability to access care are key indicators of how much you will be paying for this important resource if you move to another state. Affordability is generally measured by the rates set for insurance coverage in a state, as well as the out-of-pocket expenses that need to be paid by you when receiving the care. If rates or out-of-pocket expenses are high, your cost of living will increase. Access to healthcare is how easy or difficult it may be to receive the care. Access is measured by identifying barriers that might prevent the delivery of care such as the inability to obtain insurance coverage, having to travel long distances to health care centers and lack of sufficient facilities and/or healthcare professionals. The timeliness of care, how fast you can get to see a healthcare provider, is another important measure. ( 2023-07-25 salary.com )

Energy is one of the costs that contribute to the cost of living in a state. The cost of your utilities may fluctuate based on weather conditions. South Dakota is noted as a state that has some of the worst winter weather in the U.S. Snow, bitterly cold temperatures, storms, and strong winds can force you indoors for days on end. This typical winter weather can drive your energy costs and cost of living higher than in states with a milder climate. Expect to pay more for your utility bills during the winter months. ( 2023-07-25 salary.com )