What’s the cost of living in South Dakota?
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):
Sioux Falls: $320,269
Rapid City: $317,728
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:
Phone bill: $114
Natural gas: $50
Energy bill: $124.50
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:
One adult, no children: $3,183
One adult, one child: $9,555
One adult, two children: $9,565
Two adults (one working), no children: $7,447
Two adults (one working), one child: $9,565
Two adults (one working), two children: $9,490
Two adults (two working), no children: $7,447
Two adults (two working), one child: $9,565
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:
Wyoming Income Tax Rate: No state income tax
South Dakota Income Tax Rate: No state income tax
Montana Income Tax Rate: 1.00% to 6.90% (progressive rates)
North Dakota Income Tax Rate: 1.10% to 2.90% (progressive rates)
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.
Whether you’re retirement planning or considering relocating to chase a new career, Unbiased can assist you with your move's financial ins and outs. Find the right advisor for your needs today.
Senior Content Writer
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.