Median one-bedroom rent across the cities we track is $889 in New Mexico versus $807 in South Dakota. Overall, South Dakota runs roughly 9% cheaper on rent than New Mexico, its main day-to-day cost driver.
Median household income across tracked cities is $65,604 in New Mexico and $65,712 in South Dakota. New Mexico has a top state income tax rate of 5.90% and a 4.875% state sales tax; South Dakota has no state income tax and a 4.2% state sales tax.
State Taxes
Sales Tax
4.875%
4.2%
+0.7 pp in New Mexico
Income Tax (top rate)
5.90%
None
+5.9 pp in New Mexico
Housing (median across tracked cities)
Median 1BR Rent
$889
$807
+9% in New Mexico
Median Home Value
$266,700
$270,000
+1% in South Dakota
Income (median across tracked cities)
Median Household Income
$65,604
$65,712
+0% in South Dakota
Climate (median across tracked cities)
Avg Annual Temperature
57.2°F
45.8°F
+11.4°F in New Mexico
New Mexico vs South Dakota — FAQ
- Is it cheaper to live in New Mexico or South Dakota?
- South Dakota is cheaper on rent — its median one-bedroom of $807 runs about 9% below New Mexico's $889, based on the cities we track in each state.
- How much more do you need to earn to live in New Mexico 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 $36,000 a year in New Mexico versus $32,000 in South Dakota.
- Which has lower taxes, New Mexico or South Dakota?
- New Mexico has a top state income tax rate of 5.90% and a 4.875% 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 New Mexico/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.