Iowa vs South Dakota:
Take-Home Pay Comparison
Side-by-side tax comparison between Iowa (3.8% top rate, flat) and South Dakota (no income tax). See which state lets you keep more at every salary level, and how cost of living changes the picture.
Tax Structure: Iowa vs South Dakota
South Dakota has no state income tax, while Iowa uses a flat system with rates of 3.8% flat. On a $100K salary, this creates a state tax difference of $3,800/year that South Dakota residents simply don’t pay.
Iowa’s flat 3.8% rate means the gap scales linearly with income. At $200K, you’d save $7,600 by being in South Dakota instead.
Take-Home at Every Salary Level
South Dakota wins at 10 out of 10 salary levels tested. The advantage is consistent and significant across the income spectrum.
| Salary | Iowa | South Dakota | Difference | Winner |
|---|---|---|---|---|
| $40K | $32,800 | $34,320 | +$1,520 | South Dakota |
| $50K | $40,455 | $42,355 | +$1,900 | South Dakota |
| $60K | $48,110 | $50,390 | +$2,280 | South Dakota |
| $75K | $58,688 | $61,538 | +$2,850 | South Dakota |
| $100K | $75,325 | $79,125 | +$3,800 | South Dakota |
| $120K | $88,635 | $93,195 | +$4,560 | South Dakota |
| $150K | $108,051 | $113,751 | +$5,700 | South Dakota |
| $200K | $141,287 | $148,887 | +$7,600 | South Dakota |
| $250K | $173,764 | $183,264 | +$9,500 | South Dakota |
| $300K | $203,929 | $215,329 | +$11,400 | South Dakota |
Cost of Living: Iowa (89) vs South Dakota (92)
Take-home pay only tells part of the story. Iowa has a cost of living index of 89 while South Dakota is at 92 (national average = 100).
With similar costs of living (89 vs 92), the tax difference is the primary factor. What you see in raw take-home pay is essentially what you get in purchasing power: $84,635 in Iowa vs $86,005 in South Dakota.
Married Filing Jointly: How It Changes the Comparison
For a single earner at $100K filing jointly, take-home becomes $80,910 in Iowa and $84,710 in South Dakota \u2014 a difference of $3,800. The gap remains similar regardless of filing status.
Should You Move from Iowa to South Dakota?
On paper, moving from Iowa to South Dakota would save $3,800/year on a $100K salary, or $19,000 over 5 years. But relocation involves real costs: moving expenses, potentially buying/selling a home, changing jobs, and adjusting to a new community.
The $3,800/year savings is meaningful but probably not enough to justify a move on its own. However, combined with other factors like career growth, lifestyle preferences, or family proximity, it could tip the scale.