Moving to South Dakota
Why are People Moving to South Dakota?
There are a variety of reasons for the influx of residents into the state from outside South Dakota. The job market, particularly in urban areas like Sioux Falls, is strong and the lack of income tax makes it an attractive option for new businesses. Families seeing a better quality of life are motivated by the state’s low cost of living and comparably safe environment. The rise in work-at-home telecommuters has also helped to drive the trend to move away from dense urban areas. South Dakota is also a strikingly beautiful state, and the recreational opportunities are a draw for outdoor enthusiasts.
What are the Pros and Cons of Living in South Dakota?
There are pros and cons to moving to South Dakota that you should consider carefully. Some pros are:
- South Dakota has a lower cost of living compared to other more populous states like California and New York.
- The state also has no income tax, which means you will get to keep more of your paycheck. You can see how far your paycheck will go using this real wage calculator.
- South Dakota has beautiful outdoor areas with a variety of landscapes, from mountains and hills to grassy prairies. Highlights include the Black Hills, Badlands National Park, Mount Rushmore National Memorial, Falls Park and Palisades State Park.
- South Dakota was chosen by CNBC Money as the best state for veterans to live and work in. It was also rated sixth in the list of best states to find a job and ninth for best states to “find your dream job.”
- Wallethub chose South Dakota as the “least stressed” state in the U.S., as well as the fourth best for a clean environment and tenth for best work environment.
- South Dakota also has low property taxes and no corporate income tax, personal property tax or business inventory tax. U.S. News rated South Dakota second for states with the best tax climate and second as well for stated with best fiscal stability.
- The school system in South Dakota is well regarded and U.S News ranked South Dakota 8th in its review of higher education across the country.
- The median home value in South Dakota is approximately 18% less than the national average and the cost of utilities is about 4% less. It also has some of the lowest cost to maintain a car.
On the other side, no state is perfect! Some cons to think about before moving to South Dakota include:
- The winters are long and can be frigid, snowy, and windy, making for a tough combination for those who have never experienced a Midwestern winter. Likewise, the summers can be humid, hot, and windy and sometimes this can result in severe weather events like tornados.
- Depending on where you choose to live in South Dakota, you may have access to less amenities like a wide choice of restaurants and retail shops. “West River” which is the section of the state west of the Missouri River tends to be less populated and have less variety compared to “East River” areas like Sioux Falls.
- While the economy is strong, many jobs in certain areas tend to be in the lower end of the pay scale. The more urbanized the area the more you will find a greater diversity in job types and pay scales.
- Sports lovers may bemoan the fact that the state does not have a professional team, though you can find smaller local teams in areas like Sioux Falls.
- While there are many taxes that South Dakota does not have, there is a sales tax. The rate is 4.5 percent plus an additional fee depending on the city in which you live. There may also be local taxes which vary depending on the municipality. South Dakota also collects a use tax on items where sales tax has not been charged.
Is South Dakota Retirement Friendly?
In addition to the lack of personal state income tax, South Dakota also does not charge inheritance or state tax. Seniors can also apply for property tax relief to freeze them from increasing. Social security, pensions and other retirement income are also not taxed. With the low cost of living and minimal taxes, retirees find moving to South Dakota attractive.
What should I Know Before Moving to South Dakota?
Like any move to another state, you should do your research first before deciding on a move. Talking to an experienced Realtor can help you learn more about the different cities and neighborhoods and the average lifestyle of its residents. Contact Codi today for more information!