Median one-bedroom rent across the cities we track is $964 in Michigan versus $807 in South Dakota. Overall, South Dakota runs roughly 16% cheaper on rent than Michigan, its main day-to-day cost driver.
Median household income across tracked cities is $65,526 in Michigan and $65,712 in South Dakota. Michigan has a top state income tax rate of 4.25% 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 Michigan
Income Tax (top rate)
4.25%
None
+4.3 pp in Michigan
Housing (median across tracked cities)
Median 1BR Rent
$964
$807
+16% in Michigan
Median Home Value
$225,500
$270,000
+20% in South Dakota
Income (median across tracked cities)
Median Household Income
$65,526
$65,712
+0% in South Dakota
Climate (median across tracked cities)
Avg Annual Temperature
49.1°F
45.8°F
+3.3°F in Michigan
Michigan vs South Dakota — FAQ
- Is it cheaper to live in Michigan or South Dakota?
- South Dakota is cheaper on rent — its median one-bedroom of $807 runs about 16% below Michigan's $964, based on the cities we track in each state.
- How much more do you need to earn to live in Michigan 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 $39,000 a year in Michigan versus $32,000 in South Dakota.
- Which has lower taxes, Michigan or South Dakota?
- Michigan has a top state income tax rate of 4.25% 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 3/3 cities we track in Michigan/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.