Median one-bedroom rent across the cities we track is $782 in Indiana versus $870 in South Dakota. Overall, Indiana runs roughly 10% cheaper on rent than South Dakota, its main day-to-day cost driver.
Median household income across tracked cities is $60,293 in Indiana and $74,714 in South Dakota — about 19% higher in South Dakota. Indiana has a top state income tax rate of 2.95% and a 7% state sales tax; South Dakota has no state income tax and a 4.2% state sales tax.
State Taxes
Sales Tax
7%
4.2%
+2.8 pp in Indiana
Income Tax (top rate)
2.95%
None
+3.0 pp in Indiana
Housing (median across tracked cities)
Median 1BR Rent
$782
$870
+11% in South Dakota
Median Home Value
$169,700
$271,400
+60% in South Dakota
Income (median across tracked cities)
Median Household Income
$60,293
$74,714
+24% in South Dakota
Climate (median across tracked cities)
Avg Annual Temperature
53.2°F
45.8°F
+7.4°F in Indiana
Indiana vs South Dakota — FAQ
- Is it cheaper to live in Indiana or South Dakota?
- Indiana is cheaper on rent — its median one-bedroom of $782 runs about 10% below South Dakota's $870, based on the cities we track in each state.
- How much more do you need to earn to live in Indiana 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 $31,000 a year in Indiana versus $35,000 in South Dakota.
- Which has lower taxes, Indiana or South Dakota?
- Indiana has a top state income tax rate of 2.95% and a 7% 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 Indiana/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.