Is it cheaper to live in Salem or Sioux Falls?

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

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $40,000 a year in Salem versus $35,000 in Sioux Falls.

Which has lower taxes, Salem or Sioux Falls?

Salem is taxed under Oregon's rules (a top state income tax rate of 9.90% and no state sales tax); Sioux Falls under South Dakota's (no state income tax and a 4.2% state sales tax).

Salem vs Sioux Falls Cost of Living 2026

Salem

Oregon

$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 Salem, OR versus $1,030 in Sioux Falls, SD. Overall, Sioux Falls, SD is roughly 12% cheaper to live in day-to-day than Salem, OR, driven mainly by rent.

Median household income is $71,900 in Salem, OR and $74,714 in Sioux Falls, SD — about 4% higher in Sioux Falls, SD. Oregon has a top state income tax rate of 9.90% and no state sales tax; South Dakota has no state income tax and a 4.2% state sales tax.

Salem, OR

Sioux Falls, SD

Rent

Studio

$1,075

$825

+23% in Salem, OR

1 Bedroom

$989

$870

+12% in Salem, OR

2 Bedroom

$1,337

$1,000

+25% in Salem, OR

3 Bedroom

$1,778

$1,237

+30% in Salem, OR

Buying a Home

Median Home Value

$382,400

$271,400

+29% in Salem, OR

Income

Median Household Income

$71,900

$74,714

+4% in Sioux Falls, SD

Metro Median Wage (annual)

$55,310

$47,970

+13% in Salem, OR

People & Lifestyle

Median Age

35.7 yr

35.1 yr

+0.6 yr in Salem, OR

Homeownership

55.7%

60.0%

+4.3 pp in Sioux Falls, SD

Bachelor's+ (25+)

31.4%

37.4%

+6.0 pp in Sioux Falls, SD

Avg Commute

22.4 min

17.0 min

+5.4 min in Salem, OR

Crime (per 100k/yr)

Violent Crime

540.6

526.7

+3% in Salem, OR

Property Crime

2,878.6

2,927.1

+2% 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

53.0°F

45.8°F

+7.2°F in Salem, OR

Annual Precipitation

39.7 in

26.4 in

+13.3 in in Salem, OR

Gas

Regular Gasoline

$5.09/gal

$3.94/gal

+23% in Salem, OR

Area: West Coast (PADD 5) vs Midwest (PADD 2).

Utilities

Electricity (¢/kWh)

16.3

15.7

+3% in Salem, OR

Natural Gas ($/MCF)

$20.59

$10.95

+47% in Salem, OR

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

Groceries

Milk (gal)

$4.82

$4.31

+10% in Salem, OR

Bread (lb)

$2.04

$1.66

+19% in Salem, OR

Eggs (doz)

$2.19

$3.63

+66% in Sioux Falls, SD

Ground Beef (lb)

$7.36

$6.77

+8% in Salem, OR

Chicken (lb)

$2.01

$2.10

+4% in Sioux Falls, SD

Bananas (lb)

$0.70

$0.62

+12% in Salem, OR

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

State Taxes

Sales Tax (OR / SD)

None

4.2%

+4.2 pp in SD

Income Tax (top rate)

9.90%

None

+9.9 pp in OR

Salem vs Sioux Falls — FAQ

Is it cheaper to live in Salem or Sioux Falls?: Sioux Falls, SD is cheaper. Its monthly baseline of $1,030 (1BR rent + utilities) runs about 12% below Salem, OR's $1,170, mainly because of rent.
How much more do you need to earn to live in Salem than in Sioux Falls?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $40,000 a year in Salem versus $35,000 in Sioux Falls.
Which has lower taxes, Salem or Sioux Falls?: Salem is taxed under Oregon's rules (a top state income tax rate of 9.90% and no 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).