Cost of Living in Sioux Falls, SD

How far does a $70,000 salary go in Sioux Falls? Estimated income taxes on that gross salary total approximately $7,241 per year — South Dakota levies no state income tax, so that figure covers federal tax only. Subtract rent for a 2-bedroom apartment ($1,156/month based on HUD Fair Market Rents for the Sioux Falls metro area) and the estimated annual take-home is $48,887, or roughly $4,074 per month for everything else: food, transportation, savings, and discretionary spending.

The Sioux Falls metro has a cost of living index of 73.7 according to the Bureau of Economic Analysis Regional Price Parities (national average = 100). At 26% below the national average, Sioux Falls is a genuinely affordable metro where everyday expenses stretch further than in most cities.

At a $70,000 salary, the estimated 2-bedroom rent in Sioux Falls represents approximately 20% of gross income. That falls comfortably below the 30% rent-burden guideline, a healthy position for building savings. South Dakota's zero income tax helps offset the rent burden compared to otherwise similar cities that also levy state income tax.