Median one-bedroom rent across the cities we track is $1,253 in Arizona versus $870 in South Dakota. Overall, South Dakota runs roughly 31% cheaper on rent than Arizona, its main day-to-day cost driver.
Median household income across tracked cities is $77,041 in Arizona and $74,714 in South Dakota — about 3% higher in Arizona. Arizona has a top state income tax rate of 2.50% and a 5.6% state sales tax; South Dakota has no state income tax and a 4.2% state sales tax.
State Taxes
Sales Tax
5.6%
4.2%
+1.4 pp in Arizona
Income Tax (top rate)
2.50%
None
+2.5 pp in Arizona
Housing (median across tracked cities)
Median 1BR Rent
$1,253
$870
+31% in Arizona
Median Home Value
$364,300
$271,400
+26% in Arizona
Income (median across tracked cities)
Median Household Income
$77,041
$74,714
+3% in Arizona
Climate (median across tracked cities)
Avg Annual Temperature
75.1°F
45.8°F
+29.3°F in Arizona
Arizona vs South Dakota — FAQ
- Is it cheaper to live in Arizona or South Dakota?
- South Dakota is cheaper on rent — its median one-bedroom of $870 runs about 31% below Arizona's $1,253, based on the cities we track in each state.
- How much more do you need to earn to live in Arizona than in South Dakota?
- To keep rent near the recommended 30% of gross income, based on median rent across tracked cities, you'd want to earn roughly $50,000 a year in Arizona versus $35,000 in South Dakota.
- Which has lower taxes, Arizona or South Dakota?
- Arizona has a top state income tax rate of 2.50% and a 5.6% state sales tax. South Dakota has no state income tax and a 4.2% state sales tax.
Housing, income, and climate are medians across the 3/1 cities we track in Arizona/South Dakota — not population-weighted statewide figures. Taxes are exact state-level rates. Sources: US Census Bureau, ACS 5-Year; NOAA Climate Normals 1981–2010; Tax Foundation 2026.