South Dakota, known as the "Mount Rushmore State", is a no-income-tax Plains state with affordable housing and low overall costs. Here is everything you need to know about the cost of living in the Mount Rushmore State — from housing and groceries to taxes, utilities, childcare, and what salary you actually need.
Here is what a typical month costs in South Dakota for a single person earning the median income of $62,100/year:
Each category shows how South Dakota compares to the national average. Green means cheaper, yellow means similar, orange/red means more expensive.
Adjust your salary to see a detailed monthly budget breakdown for living in South Dakota.
Select a state to see how much salary you would need there to maintain the same lifestyle you have in South Dakota.
The most popular cities for residents and newcomers in South Dakota:
Housing is the single biggest expense in South Dakota, as it is everywhere. The median home price in South Dakota is $265,000, and the median rent for a one-bedroom apartment is $850/month. With a housing cost index of 78, South Dakota housing is 22% cheaper than the national average.
Housing in South Dakota is a genuine advantage. The low cost of housing frees up income for savings, investments, and discretionary spending that residents of expensive states simply cannot afford.
South Dakota is one of only 9 states with no state income tax. This is a major financial benefit — a household earning $62,100 saves approximately $3,726/year compared to a state with a 6% income tax rate. This extra take-home pay effectively reduces your cost of living and increases your purchasing power.
The average single person in South Dakota spends approximately $390/month on groceries. A family of four can expect to spend $975-$1,170/month. The food cost index of 97 means groceries in South Dakota are 3% below the national average.
Gas prices in South Dakota average $3.1/gallon. For the average commuter driving 15,000 miles/year at 25 MPG, that is roughly $1,860/year in fuel costs.
South Dakota healthcare costs are 6% above the national average (index: 106). The average annual healthcare cost per person in South Dakota is approximately $6,360 including premiums and out-of-pocket expenses. Employer-sponsored health insurance covers the majority of working adults.
Infant daycare in South Dakota averages $800/month ($9,600/year). This is below the national average, making South Dakota more family-friendly from a financial perspective. Many families in South Dakota find that one parent staying home is more cost-effective when two or more children need daycare.
South Dakota offers a solid balance of cost, opportunity, and quality of life. With costs near the national average, you get the added benefit of no state income tax, access to growing job markets in Sioux Falls and Rapid City, and a cost of living that leaves room for saving and investing.
See all South Dakota financial calculators:
South Dakota (SD) has a cost of living index of 91, meaning it is 9% cheaper than the US average. Housing is the biggest factor with an index of 78. The median rent is $850/month and the median home price is $265,000. South Dakota ranks #16 out of 50 states for affordability (1 = cheapest).
For a single person, a comfortable salary in South Dakota is approximately $80,730/year ($6,728/month). For a family of four, aim for $136,620/year. This covers housing at 30% of income, groceries ($390/mo), transportation, healthcare, and a 15% savings rate. The median household income in South Dakota is $62,100.
The median rent for a one-bedroom apartment in South Dakota is approximately $850/month. A two-bedroom averages $1,148/month. Rent varies significantly by city: Sioux Falls, Rapid City, Aberdeen are the most popular metro areas. Housing in South Dakota is affordable compared to the national average.
South Dakota is an excellent choice for affordability. With a cost of living 9% below the national average and median rent of just $850/month, your money goes significantly further here. The lack of state income tax is an additional major benefit. Top cities include Sioux Falls, Rapid City, Aberdeen.
The most affordable areas in South Dakota are typically smaller cities and rural areas away from the major metros. Within South Dakota, costs can vary 20-40% between the most expensive city (Sioux Falls metro) and more affordable areas. Brookings and Watertown tend to offer lower costs while still providing good amenities and job opportunities.
The average monthly grocery bill in South Dakota for a single person is approximately $390 ($975 for a family of four). South Dakota food costs are 3% below the national average. Shopping at Walmart, Aldi, and local discount stores can reduce this by 15-25%.
The average monthly electric bill in South Dakota is approximately $125. Total utilities (electric, gas, water, internet) average $275/month. South Dakota utilities are 2% below the national average. Utility costs are manageable for most households.
South Dakota has NO state income tax, saving the average household $3,105-$4,968/year compared to states with typical income tax rates. This is one of only 9 states with no income tax. However, South Dakota may collect more revenue through sales tax or property tax.