April 6, 2023
An important factor influencing your choice of state to settle in the U.S. is the cost of living. If you decide to move to the U.S. Midwest, check out the cost of living in South Dakota.
The state is divided into several cities, with some being affordable, although they aren't entirely as populated as urban centers. This article will expose the cost of living in South Dakota.
The Missouri River divides South Dakota into the East River and the West River. Tourists visit South Dakota each year to enjoy the unmatched beauty. South Dakota is also renowned for its natural resources, low cost of living, and thriving economy.
The economy of South Dakota is dependent on agriculture, tourism, and national defense. Areas that attract the most significant number of tourists include Brookings, Sioux Falls, and Yankton.
In a state where the entire population is referred to as minor, South Dakota has a vast quantity of nature to offer those who choose to reside here. For instance, some of the affordable go-to destinations include:
This prairie grassland sits on over 244,000 acres and is located about 75 miles east of Rapid City. Many tourists often visit to traverse about its Bison, camp beneath an evening sky filled with stars and hike.
Attracting over three million yearly visitors, Mount Rushmore’s famous sculptures featuring Abraham Lincoln, Thomas Jefferson, and Theodore Roosevelt make it an iconic memorial destination.
Every August, one of the most exciting and popular motorcycle rallies worldwide is hosted in Sturgis's small town. Each year nearly 500,000 individuals come to Sturgis to participate in the fun.
Custer State Park sits on roughly 71,000 acres of land and is host to copious outdoor activities and competitions. The most popular activities include but are not limited to fishing, biking, and hiking.
The overall cost of living in South Dakota is lower than that of the U.S. The Bureau of Economic Analysis estimates that services and various goods in South Dakota cost about 12.1% less than most of the U.S. The state has the 6th lowest overall cost of living.
Generally, living in a dense, urban metro area is very expensive compared to rural areas. South Dakota is home to two metropolitan areas. The most expensive area in South Dakota is the Sioux Falls metro. Here, goods and services are 8.7% lower than the national average but still 3.4% higher than other parts of the state on average.
Other costs come into play concerning living in South Dakota. These costs include housing, transportation, health care, child care, taxes, and food costs.
Housing is the most important component concerning the cost of living. A typical home in the state of South Dakota costs about $159,100, whereas the national median value is $204,900. In 1939, the median price of a built house was $101,600, whereas the median price of a similar unit in 2014 and later was $301,000.
There is a huge difference in rental rates as well. Living in South Dakota costs less in every aspect. A standard renter in South Dakota pays $722 per month on housing, whereas the national median monthly rent in the state is $1,023. The monthly rent for a one-bedroom apartment in the state is $553, while the typical rate for a unit consisting of five or more bedrooms is $898.
The overall median rate is lower than the national rate for a five-plus bedroom apartment. The national median rate is approximately $1,600, almost double the rental rate in South Dakota. The cost of living in South Dakota as a whole is significantly low, which is why the state is ranked as having the 17th lowest rental rate of any state across the whole United States. About 31.9% of homes are occupied in South Dakota compared to 36.2 % on the national scale.
Estimates show that nearly 89.0% of commuters in South Dakota drive to work. Nationwide, 85.5% of commuters drive to work. A typical motorist in the state drives 11,042 miles per year. Fuel costs an average of $2.16 per gallon in the state, as reported in 2020.
An average motorist spends nearly $985 on gas per year. Transportation not only covers gas consumption and means of transport but also other costs like car insurance premiums. The premiums vary from state to state. In South Dakota, car insurance premiums are on average $1,434, less than the national average, which is $1517.
According to data from EPI, the average single adult in the state spends $10,641 on transportation each year.
When it comes to health care costs, South Dakota is relatively expensive. Even at a basic level of coverage, the insurance premiums for healthcare are relatively high in this state. The cost of health care coverage for a single adult in the state is at least $5,176 per year. The exact price for the national average is $4,266. If you have a family of four, then healthcare will cost at least $15,598. The national average is about $12,950.
Food is an everyday expense, no matter where you live. Expenses on food significantly impact the overall cost of living in a given area. According to the U.S. Department of Agriculture, the cost of food varies from state to state. In South Dakota, the price of food and related items is almost equal to the national figures.
On average, a single adult spends almost $3,254 on food annually. A family of four spends $9,397 on average. The nationwide average annual expenditure is $3,240 for a single adult and $9,354 for a family. These figures are calculated based on the adequate nutritional diet of home-cooked meals purchased at grocery stores.
Childcare cost is another reason South Dakota is a great state to raise your family. Compared to other states, South Dakota has the lowest childcare costs. The average yearly cost of child care for a 4-year old child in South Dakota is $5,880. This amount is well below the national average of $8,903.
The cost of caring for a 4-year old child and an 8-year old child per year in South Dakota is $12,215, whereas if we consider the same conditions of care for other states in the U.S., the national average is at least $15,853.
This difference in childcare costs makes South Dakota a very suitable place to reside for people who have busy lives and need to take proper care of their children at the same time.
The average person working in South Dakota pays an annual tax of about $482. This figure accounts for state and federal income taxes, social security contributions, and Medicare payroll. The national average is $6542 annually. South Dakota happens to be one of nine states with no income tax.
It explains that the wage tax is substantially lower than the average tax payments. Excluding federal, state, and local taxes like property taxes or sales taxes, the tax burden in South Dakota is lower than the national figure. State tax collection in South Dakota averages $2,174 per year, whereas the national average is about $3151.
When deciding on where to settle in the United States, why not opt for South Dakota? Besides South Dakota being one of just nine U.S. states that do not charge you a personal income tax, it represents one of the two states (the other state being Wyoming) that doesn't have corporate income and gross receipt tax for businesses.
Therefore, if you want to begin your own company or business, South Dakota is the ideal place to start. Alternatively, are you a senior citizen or retiree on the lookout for a great place to relax and enjoy the rest of your years with limited tax troubles? If so, South Dakota may just be the best place to retire.
Why? Because it doesn't charge you either inheritance or estate tax, as such, you will have all your money to leave to your family or charity when you pass on. Moreover, if tax happens to be a substantial factor for where you want to live due to overall living costs, try South Dakota.
There is no doubt that South Dakota has a lot to offer in terms of the beauty of its sceneries. An added perk of living in the state is its low tax obligations. As a resident of South Dakota, you have a lot to gain in terms of tax savings. If you have read all the way to this point, you may be one of those looking to shift to this beautiful state.
If you still have questions that you would like addressed, speak to an expert. They will be able to guide and help you decide whether it is good, generally, for you and your family to shift to South Dakota. Moreover, do you need any assistance changing your mailing address and receiving your mail in a new location?
Why not use a trusted mail forwarding service? These experts can not only assist you with all your mailing needs, but they can also assist with the relocation process.