Minnesota vs South Dakota:
Take-Home Pay Comparison
Side-by-side tax comparison between Minnesota (9.85% top rate, graduated) 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: Minnesota vs South Dakota
South Dakota has no state income tax, while Minnesota uses a graduated system with rates of 5.35-9.85%. On a $100K salary, this creates a state tax difference of $6,402/year that South Dakota residents simply don’t pay.
Minnesota’s graduated brackets mean the gap between these two states widens at higher salaries. At $200K, the state tax difference grows to $12,805/year, while at $50K it’s only $3,201.
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 | Minnesota | South Dakota | Difference | Winner |
|---|---|---|---|---|
| $40K | $31,759 | $34,320 | +$2,561 | South Dakota |
| $50K | $39,154 | $42,355 | +$3,201 | South Dakota |
| $60K | $46,549 | $50,390 | +$3,842 | South Dakota |
| $75K | $56,736 | $61,538 | +$4,802 | South Dakota |
| $100K | $72,723 | $79,125 | +$6,403 | South Dakota |
| $120K | $85,512 | $93,195 | +$7,683 | South Dakota |
| $150K | $104,147 | $113,751 | +$9,604 | South Dakota |
| $200K | $136,082 | $148,887 | +$12,805 | South Dakota |
| $250K | $167,258 | $183,264 | +$16,006 | South Dakota |
| $300K | $196,121 | $215,329 | +$19,208 | South Dakota |
Cost of Living: Minnesota (99) vs South Dakota (92)
Take-home pay only tells part of the story. Minnesota has a cost of living index of 99 while South Dakota is at 92 (national average = 100).
The cost of living gap is moderate. After adjustment, $100K has purchasing power of $73,457 in Minnesota vs $86,005 in South Dakota. The take-home winner also wins on purchasing power.
Married Filing Jointly: How It Changes the Comparison
For a single earner at $100K filing jointly, take-home becomes $78,308 in Minnesota and $84,710 in South Dakota \u2014 a difference of $6,403. The gap remains similar regardless of filing status.
Should You Move from Minnesota to South Dakota?
On paper, moving from Minnesota to South Dakota would save $6,403/year on a $100K salary, or $32,013 over 5 years. But relocation involves real costs: moving expenses, potentially buying/selling a home, changing jobs, and adjusting to a new community.
With an annual savings of $6,403, the tax difference alone is significant enough to justify a move for many people — especially if career opportunities are comparable. At higher salaries, the savings grow even larger: a $200K earner would save $12,805/year.