Is it cheaper to live in New Orleans or Sioux Falls?

Sioux Falls, SD is cheaper. Its monthly baseline of $1,030 (1BR rent + utilities) runs about 12% below New Orleans, LA's $1,170, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $41,000 a year in New Orleans versus $35,000 in Sioux Falls.

Which has lower taxes, New Orleans or Sioux Falls?

New Orleans is taxed under Louisiana's rules (a top state income tax rate of 3.00% and a 5% state sales tax); Sioux Falls under South Dakota's (no state income tax and a 4.2% state sales tax).

New Orleans vs Sioux Falls Cost of Living 2026

New Orleans

Louisiana

$1,170/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 $1,170 in New Orleans, LA versus $1,030 in Sioux Falls, SD. Overall, Sioux Falls, SD is roughly 12% cheaper to live in day-to-day than New Orleans, LA, driven mainly by rent.

Median household income is $55,339 in New Orleans, LA and $74,714 in Sioux Falls, SD — about 26% higher in Sioux Falls, SD. Louisiana has a top state income tax rate of 3.00% and a 5% state sales tax; South Dakota has no state income tax and a 4.2% state sales tax.

New Orleans, LA

Sioux Falls, SD

Rent

Studio

$953

$825

+13% in New Orleans, LA

1 Bedroom

$1,019

$870

+15% in New Orleans, LA

2 Bedroom

$1,287

$1,000

+22% in New Orleans, LA

3 Bedroom

$1,392

$1,237

+11% in New Orleans, LA

Buying a Home

Median Home Value

$296,400

$271,400

+8% in New Orleans, LA

Income

Median Household Income

$55,339

$74,714

+35% in Sioux Falls, SD

Metro Median Wage (annual)

$47,290

$47,970

+1% in Sioux Falls, SD

People & Lifestyle

Median Age

38.4 yr

35.1 yr

+3.3 yr in New Orleans, LA

Homeownership

50.5%

60.0%

+9.5 pp in Sioux Falls, SD

Bachelor's+ (25+)

42.0%

37.4%

+4.6 pp in New Orleans, LA

Avg Commute

22.7 min

17.0 min

+5.7 min in New Orleans, LA

Crime (per 100k/yr)

Violent Crime

1,361.1

526.7

+61% in New Orleans, LA

Property Crime

5,089.6

2,927.1

+42% in New Orleans, LA

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

Climate

Avg Annual Temperature

70.6°F

45.8°F

+24.8°F in New Orleans, LA

Annual Precipitation

62.3 in

26.4 in

+35.9 in in New Orleans, LA

Gas

Regular Gasoline

$3.62/gal

$3.94/gal

+9% in Sioux Falls, SD

Area: Gulf Coast (PADD 3) vs Midwest (PADD 2).

Public Transit

Base Fare (one-way)

$1.25

—

Adult base one-way fare — New Orleans RTA vs — (2026).

Utilities

Electricity (¢/kWh)

14.2

15.7

+11% in Sioux Falls, SD

Natural Gas ($/MCF)

$16.62

$10.95

+34% in New Orleans, LA

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 New Orleans, LA

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 (LA / SD)

4.2%

+0.8 pp in LA

Income Tax (top rate)

3.00%

None

+3.0 pp in LA

New Orleans vs Sioux Falls — FAQ

Is it cheaper to live in New Orleans or Sioux Falls?: Sioux Falls, SD is cheaper. Its monthly baseline of $1,030 (1BR rent + utilities) runs about 12% below New Orleans, LA's $1,170, mainly because of rent.
How much more do you need to earn to live in New Orleans than in Sioux Falls?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $41,000 a year in New Orleans versus $35,000 in Sioux Falls.
Which has lower taxes, New Orleans or Sioux Falls?: New Orleans is taxed under Louisiana's rules (a top state income tax rate of 3.00% and a 5% 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).