Is it cheaper to live in Annapolis or Sioux Falls?

Sioux Falls, SD is cheaper. Its monthly baseline of $1,030 (1BR rent + utilities) runs about 43% below Annapolis, MD's $1,820, mainly because of rent.

How much more do you need to earn to live in Annapolis than in Sioux Falls?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $64,000 a year in Annapolis versus $35,000 in Sioux Falls.

Which has lower taxes, Annapolis or Sioux Falls?

Annapolis is taxed under Maryland's rules (a top state income tax rate of 6.50% and a 6% state sales tax); Sioux Falls under South Dakota's (no state income tax and a 4.2% state sales tax).

Annapolis vs Sioux Falls Cost of Living 2026

Annapolis

Maryland

$1,820/mo est.

Sioux Falls

South Dakota

$1,030/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,820 in Annapolis, MD versus $1,030 in Sioux Falls, SD. Overall, Sioux Falls, SD is roughly 43% cheaper to live in day-to-day than Annapolis, MD, driven mainly by rent.

Median household income is $104,257 in Annapolis, MD and $74,714 in Sioux Falls, SD — about 28% higher in Annapolis, MD. Maryland has a top state income tax rate of 6.50% and a 6% state sales tax; South Dakota has no state income tax and a 4.2% state sales tax.

Annapolis, MD

Sioux Falls, SD

Rent

Studio

$1,239

$825

+33% in Annapolis, MD

1 Bedroom

$1,598

$870

+46% in Annapolis, MD

2 Bedroom

$1,864

$1,000

+46% in Annapolis, MD

3 Bedroom

$2,232

$1,237

+45% in Annapolis, MD

Buying a Home

Median Home Value

$510,200

$271,400

+47% in Annapolis, MD

Income

Median Household Income

$104,257

$74,714

+28% in Annapolis, MD

Metro Median Wage (annual)

$59,070

$47,970

+19% in Annapolis, MD

People & Lifestyle

Median Age

40.9 yr

35.1 yr

+5.8 yr in Annapolis, MD

Homeownership

59.8%

60.0%

+0.2 pp in Sioux Falls, SD

Bachelor's+ (25+)

53.7%

37.4%

+16.3 pp in Annapolis, MD

Avg Commute

28.7 min

17.0 min

+11.7 min in Annapolis, MD

Crime (per 100k/yr)

Violent Crime

806

526.7

+35% in Annapolis, MD

Property Crime

2,111.5

2,927.1

+39% in Sioux Falls, SD

FBI Crime Data Explorer. Offenses per 100,000 residents per year; agency reporting practices vary, so this is approximate.

Climate

Avg Annual Temperature

57.1°F

45.8°F

+11.3°F in Annapolis, MD

Annual Precipitation

—

26.4 in

Gas

Regular Gasoline

$3.86/gal

$3.94/gal

+2% in Sioux Falls, SD

Area: East Coast (PADD 1) vs Midwest (PADD 2).

Utilities

Electricity (¢/kWh)

21.8

15.7

+28% in Annapolis, MD

Natural Gas ($/MCF)

$18.94

$10.95

+42% in Annapolis, MD

Residential, state-level averages (EIA). MCF = 1,000 cubic feet.

Groceries

Milk (gal)

$4.00

$4.31

+8% in Sioux Falls, SD

Bread (lb)

$1.75

$1.66

+5% in Annapolis, MD

Eggs (doz)

$2.21

$3.63

+64% in Sioux Falls, SD

Ground Beef (lb)

$6.45

$6.77

+5% in Sioux Falls, SD

Chicken (lb)

$1.90

$2.10

+10% in Sioux Falls, SD

Bananas (lb)

$0.62

about equal

Average prices — South vs Midwest (BLS). Regional where available, otherwise U.S. average.

State Taxes

Sales Tax (MD / SD)

4.2%

+1.8 pp in MD

Income Tax (top rate)

6.50%

None

+6.5 pp in MD

Annapolis vs Sioux Falls — FAQ

Is it cheaper to live in Annapolis or Sioux Falls?: Sioux Falls, SD is cheaper. Its monthly baseline of $1,030 (1BR rent + utilities) runs about 43% below Annapolis, MD's $1,820, mainly because of rent.
How much more do you need to earn to live in Annapolis than in Sioux Falls?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $64,000 a year in Annapolis versus $35,000 in Sioux Falls.
Which has lower taxes, Annapolis or Sioux Falls?: Annapolis is taxed under Maryland's rules (a top state income tax rate of 6.50% and a 6% state sales tax); Sioux Falls under South Dakota's (no state income tax and a 4.2% state sales tax).

Sources: US Census Bureau, ACS 5-Year (rent, income, home value, demographics); NOAA Climate Normals 1981–2010 (climate); EIA weekly retail (gas); Tax Foundation 2026 (state taxes).