What’s the cost of living in South Dakota?

1 min read by Rachel Carey Last updated November 27, 2024

When considering a move to a new state, understanding the cost of living is vital for effective budgeting and financial planning. If you’re planning a move to South Dakota, here are some current statistics related to the cost of living in the state that could help you make up your mind.

The average cost of living in South Dakota 

South Dakota is home to just under 900,000 people.  

According to research, the cost of living in South Dakota is 6% lower than the national average. 

While according to data gathered in 2022 from MERIC, the Missouri Economic Research and Information Center, the state ranks 21st in a list of states with the lowest to the highest cost of living. 

Housing costs in South Dakota 

As of March 2023, the average home value in South Dakota is estimated to be around $284,308, according to the Zillow Home Value Index as of March 2023.  

It’s important to note that housing prices can significantly differ across various regions within the state.

Typical Home Prices in South Dakota (Zillow Data):

  1. Sioux Falls: $320,269

  2. Rapid City: $317,728

  3. Brookings: $277,403

  4. Watertown: $263,402

  5. Aberdeen: $218,378

The average price of rental apartments nationwide is $1,702. The average apartment rent in Sioux Falls, for example, is $1,624.

In addition, understanding these costs in relation to the average salary in South Dakota is crucial for realistic budgeting.

Utility costs in South Dakota

Utility costs play a significant role in South Dakota's overall cost of living. According to Forbes, the average monthly cost is around $408.

Average Monthly Utility Costs in South Dakota:

  1. Phone bill: $114

  2. Internet: $50

  3. Natural gas: $50

  4. Energy bill: $124.50

  5. Streaming: $44.25

  6. Monthly water bill: $26

Grocery and food costs in South Dakota 

When it comes to groceries and food costs, South Dakota generally aligns with prices found elsewhere in the United States.   

According to Zippia, those in Sioux Falls pay $286 on average each month. This is the 7th highest in the country.  

According to 2021 data from the Bureau of Labor Statistics, the average spending on food at home is $5,259 annually, or about $438 per month for US households.   

Transportation costs in South Dakota 

Transportation costs, including gas prices and vehicle maintenance, impact South Dakota's overall cost of living.  

According to MIT, a single adult with no children can expect to pay upwards of $5,300. 

Gas prices in South Dakota are typically in and around the national average. South Dakota was below the national average at the time of writing. These prices fluctuate over time.   

It is also worth noting that prices can vary across different regions within the state.  

Healthcare costs in South Dakota 

Understanding healthcare expenses is crucial when considering the cost of living.  

The specific healthcare costs in South Dakota can vary depending on factors such as insurance coverage and individual circumstances. Therefore, it is advisable to research and consult with healthcare providers and insurance companies to obtain accurate cost estimates. 

Annual Health Expenditure in South Dakota Estimated by MIT:

  1. One adult, no children: $3,183

  2. One adult, one child: $9,555

  3. One adult, two children: $9,565

  4. Two adults (one working), no children: $7,447

  5. Two adults (one working), one child: $9,565

  6. Two adults (one working), two children: $9,490

  7. Two adults (two working), no children: $7,447

  8. Two adults (two working), one child: $9,565

  9. Two adults (two working), two children: $9,490

Childcare costs in South Dakota

Families in South Dakota currently pay around $8,208 per year for childcare for one child. This figure doubles for two children.  

However, it's important to note that this figure can vary across the state. 

Taxation in South Dakota

South Dakota has no state income tax rate.

Taxes in South Dakota compared to neighboring states:

  1. Wyoming Income Tax Rate: No state income tax

  2. South Dakota Income Tax Rate: No state income tax

  3. Montana Income Tax Rate: 1.00% to 6.90% (progressive rates)

  4. North Dakota Income Tax Rate: 1.10% to 2.90% (progressive rates)

  5. Nebraska Income Tax Rate: 2.46% to 6.84% (progressive rates)

In South Dakota, the state sales tax rate is 4.5%. However, it is important to note that additional local sales taxes may be imposed by counties, municipalities, and special taxing districts, which can vary across different areas in South Dakota. 

The bottom line 

The amount of money needed to live comfortably in South Dakota can vary depending on location, lifestyle, family size, and personal preferences. However, as the most expensive state in the US, you may need more than you first think. 

It's essential to consider these factors, along with personal circumstances and preferences, when evaluating the cost of living in South Dakota. In addition, consulting with a financial advisor can provide valuable insights and assistance in managing expenses and financial planning. 

Get expert financial advice and learn more about the cost of living and how to manage it with an SEC-regulated advisor. Let Unbiased match you with the best financial advisor for your needs. 

Senior Content Writer

Rachel Carey

Rachel is a Senior Content Writer at Unbiased. She has nearly a decade of experience writing and producing content across a range of different sectors.