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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
South Dakota is a genuine bargain: 1 of the 1 cities in this ranking come in below the national cost-of-living average. Sioux Falls leads at an index of 95 with rent at just $1,265/month — 33% less than the $1,895 national median. Here are the numbers, sourced from federal data updated in 2026.
South Dakota is a genuine bargain: 1 of the 1 cities in this ranking come in below the national cost-of-living average. Sioux Falls leads at an index of 95 with rent at just $1,265/month — 33% less than the $1,895 national median. Here are the numbers, sourced from federal data updated in 2026.
Sioux Falls earns its position at #1 through a combination that's hard to replicate. The 95 cost index sits 17 points below the national baseline, and the $74,714 median income means purchasing power here is amplified by the low cost base. Homes list at $326,187 — $141,183 below the national median — a genuine ownership opportunity. On the cost side, Utilities leads the way at 88, while Healthcare trails at 98.
Tax burden isn't just income tax. We combine three layers: state income tax (0% in Sioux Falls), combined state+local sales tax (6.1%), and effective property tax (1.08%). South Dakota has no state income tax — a significant advantage that keeps more of every paycheck. On a $75,000 salary, the estimated take-home in #1 Sioux Falls is $57,710/year.
But the numbers also reveal: Here's the state-level backdrop: South Dakota averages a 95 cost index, $1,265/mo rent, and $74,714 income across 1 cities. That's $630 less than the national rent average. No income tax and Great Plains affordability — and that context shapes every city in this ranking.
If you're ready to act on this, three things to do next: 1) Click into the city pages for the top 3 and check rent trends — direction matters more than the snapshot. 2) Run your income through the salary calculator for a personalized cost comparison. 3) Compare your top two picks head-to-head on our comparison page. The data is here; the decision is yours.
#1 Ranked: Sioux Falls — cost index 95, rent $1,265/mo, income $74,714
1 of 1 cities come in below the national cost-of-living average of 112
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
| Rank | City | Combined Rate | Income Tax | Sales Tax | Cost Index | |
|---|---|---|---|---|---|---|
| 1 | Sioux Falls | 7.2% | 0% | 6.1% | 95 | Details |
206,410 residents · South Dakota
Sioux Falls is one of the cheaper options here. Rent is $1,265/month, which is lower than most cities in this ranking. The cost index is 95. Income sits at $74,714. Not the most exciting stat, but it matters.
| City | State Tax | Sales Tax | Property Tax | Est. Take-Home |
|---|---|---|---|---|
1Sioux Falls | 0% | 6.1% | 1.08% | $57,508 |
We combine state income tax rate, combined sales tax (state + local), and effective property tax rate into a total tax burden score. Cities are ranked by this combined metric — lower is better for your wallet. All data is sourced from federal agencies and verified research institutions. Cost of living indices are normalized to 100 (national median) using Zillow rent as the primary signal, with sub-category adjustments derived from regional BLS price data. Rankings are updated monthly as new data is released.
Sioux Falls ranks #1 in South Dakota for this analysis with a cost index of 95 and median income of $74,714.
Our cost of living index uses real Zillow rent data as the foundation, indexed to 100 (national median). Sub-categories (housing, food, transport, utilities, healthcare) are derived from the overall index with regional adjustments. Data is updated monthly.
City data is refreshed monthly from Census Bureau population estimates, Zillow rent and home price indices, BLS salary data, and Tax Foundation tax rates. Last updated: 2026.
The median 1-bedroom rent in Sioux Falls is $1,265/month as of 2026, based on Zillow's Observed Rent Index. This is $630 below the national median of $1,895/month.
The median home price in Sioux Falls is $326,187, which is 4.4× the local median income. It's on the edge of affordability for median-income households. The national median home price is $467,370.
South Dakota has a 0% state income tax rate — one of the states with no income tax. Combined state and local sales tax averages 6.1%, and the effective property tax rate is 1.08%.
This ranking was generated using data current as of early 2026. Population and income data comes from the Census Bureau's American Community Survey (5-year estimates). Rent and home price data is from Zillow's monthly releases. Tax rates are from the Tax Foundation's 2025 edition. Rankings are refreshed monthly.