Lower Manhattan skyline across New York Harbor, United States

Home / Relocation inside the US / South Dakota

United StatesRelocation inside the US

Relocating to South Dakota: state taxes, residency rules and cost of living

Official figures for South Dakota: state income tax, capital gains, estate and inheritance tax, sales tax and the residency test, with rents, home values, price levels and safety from federal statistics.

Talk to a specialist
NoneTop state income tax rate
4.2%State sales tax rate
$1,089Median gross rent per month
88.6Price level (US = 100)
Data updated 30 October 2026 Official sources: state revenue departments, Census Bureau, BEA, EIA, FBI Also served to AI agents via MCP

The short answer

What does it cost to live in South Dakota?

South Dakota state income tax: No state income tax on wages. Median gross rent is $1,089 per month and the price level is 88.6 against a US average of 100. Sales, estate and inheritance taxes and the residency rule are set out below with their sources.

Evidence: Official source · Machine-readable data · As of 30 October 2026

State tax rules

State taxes in South Dakota

Each rule below is read from the South Dakota revenue department or statute and checked against an independent table. Local taxes are not included.

State income tax
No state income tax on wages
Source
Capital gains
South Dakota does not tax capital gains because it has no individual income tax.
Source
Estate tax
South Dakota has no estate tax.
Source
Inheritance tax
South Dakota has no inheritance tax; the constitution bars one.
Source
Sales tax
Statewide rate 4.2%; local rates may be added
Source

State level only. Local income taxes (for example city or county taxes) and local sales taxes are added on top where they exist.

Cost of living

Housing, prices and safety in South Dakota

Housing, prices and safety in South Dakota
MetricValue
Median gross rent per month$1,089
Median home value$299,100
Property tax as a share of home value1.04%
Median real estate taxes paid per year$3,098
Median household income$80,506
Price level (US = 100)88.6
Housing price level (US = 100)67.6
Residential electricity price14.58 cents per kWh

Rent, home value, property tax and income: Census Bureau, American Community Survey 2025. Price levels: BEA Regional Price Parities 2024. Electricity: EIA, year to date through August 2026.

Back to the state overview · Methodology and sources

Questions

Living in South Dakota: common questions

Does South Dakota have a state income tax?

South Dakota state income tax: No state income tax on wages. Federal income tax applies in addition, as in every state.

What is the sales tax in South Dakota?

The statewide sales tax rate in South Dakota is 4.2%. Counties and cities may add local rates.

How much does housing cost in South Dakota?

In South Dakota the median gross rent is $1,089 per month and the median value of an owner-occupied home is $299,100, according to the Census Bureau American Community Survey 2025.

Information, not tax or legal advice. Rates are statutory state rates for the stated year; local income, sales and property taxes, deductions and federal tax are not included. Statistics are the latest official releases for the year shown. Confirm your own position with the state revenue department or a tax adviser.

Plan the move with a specialist

Residence, tax domicile and timing decide what a move is worth. Our consultants help you weigh state tax, cost of living and your immigration status together, in confidence.

Book a consultation
South DakotaConfidential consultation
Consult