Living in South Dakota: Income, Housing, Taxes & Cost of Living (2026)

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Table of Contents

South Dakota at a Glance

Metric Value National Rank
Population (2024) 920,000 46th
Median household income $69,457 Average
Median home price $290,000 Below average
Cost of living index 91 Below average
State income tax None N/A
Sales tax 4.2% (+ local up to 2%) Below average
Property tax (effective rate) 1.17% Average

Income and Housing

City/Area Median Income Median Home Price Median Rent (2BR)
Sioux Falls $72,000 $310,000 $1,150
Rapid City $62,000 $310,000 $1,100
Aberdeen $58,000 $230,000 $900
Brookings $52,000 $260,000 $900
Pierre (capital) $62,000 $250,000 $900

Sioux Falls dominates — it’s home to nearly 30% of the state’s population and a growing financial services hub (Citibank, Wells Fargo credit card operations).

South Dakota Pros and Cons

Financial Pros Financial Cons
No state income tax Small population, limited metro amenities
Below-average COL Cold winters (heating $2K-$4K/year)
Low sales tax rate Limited job market outside Sioux Falls
Affordable housing Low population density (remote)
Trust-friendly laws (asset protection) High wind/tornado risk

Related: Cost of Living by State | States with No Income Tax | Property Tax by State