Median one-bedroom rent across the cities we track is $877 in Kentucky versus $870 in South Dakota. Overall, South Dakota runs roughly 1% cheaper on rent than Kentucky, its main day-to-day cost driver.
Median household income across tracked cities is $64,731 in Kentucky and $74,714 in South Dakota — about 13% higher in South Dakota. Kentucky has a top state income tax rate of 3.50% and a 6% state sales tax; South Dakota has no state income tax and a 4.2% state sales tax.
State Taxes
Sales Tax
6%
4.2%
+1.8 pp in Kentucky
Income Tax (top rate)
3.50%
None
+3.5 pp in Kentucky
Housing (median across tracked cities)
Median 1BR Rent
$877
$870
+1% in Kentucky
Median Home Value
$232,100
$271,400
+17% in South Dakota
Income (median across tracked cities)
Median Household Income
$64,731
$74,714
+15% in South Dakota
Climate (median across tracked cities)
Avg Annual Temperature
58.0°F
45.8°F
+12.2°F in Kentucky
Kentucky vs South Dakota — FAQ
- Is it cheaper to live in Kentucky or South Dakota?
- South Dakota is cheaper on rent — its median one-bedroom of $870 runs about 1% below Kentucky's $877, based on the cities we track in each state.
- How much more do you need to earn to live in Kentucky 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 $35,000 a year in Kentucky versus $35,000 in South Dakota.
- Which has lower taxes, Kentucky or South Dakota?
- Kentucky has a top state income tax rate of 3.50% and a 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 Kentucky/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.