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Cost of Living in South Dakota: 88 Percent of National Average

In South Dakota, things just cost less. In fact, the cost of living is only 88 percent of the national average. That’s according to the newest data set of Regional Price Parities (RPP), put out each year by the Bureau of Economic Analysis (BEA).

“We are always saying that South Dakota is a low cost-of-living, low cost-of-doing-business state,” said GOED Commissioner Scott Stern. “The Regional Price Parities do a great job of quantifying this and giving potential businesses and employees solid data on which to help them make location decisions.”

With the national average scaled at 100 percent, South Dakota falls just above the 88 percent mark at 88.2 percent, which is the fourth-lowest in the nation.

To configure the RPPs, the BEA takes into account prices for food, apparel, housing, transportation, medical, education and other goods and services. The result is a cost-of-living index that makes it possible to compare costs across different cities and states.

Stern says that the when the RPP data is coupled with the state’s tax climate – both for individuals and businesses – South Dakota shows really, really well.

“South Dakota’s tax climate is very competitive amongst the 50 states,” Stern said. “With no income tax, corporate income tax, business inventory tax, personal property tax or inheritance tax, we are just simply a great place to live and conduct business in.”

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This is a publication of the Governor's Office of Economic Development. Commissioner Scott Stern; Deputy Commissioner-Aaron Scheibe; Marketing and Public Relations Director-Mary Lehecka Nelson; Editor and Designer-Jennifer Lambley. © Copyright 2017