Side-by-side tax comparison between New Hampshire (no income tax) 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.
Both New Hampshire and South Dakota have no state income tax, so the take-home pay difference at any salary level comes down to local taxes and cost of living. Federal tax and FICA are identical regardless of state.
Neither state imposes local income taxes, so the only difference is cost of living: New Hampshire at 108 vs South Dakota at 92.
New Hampshire wins at 0 out of 10 salary levels tested. The states are evenly matched.
| Salary | New Hampshire | South Dakota | Difference | Winner |
|---|---|---|---|---|
| $40K | $34,320 | $34,320 | $0 | Tie |
| $50K | $42,355 | $42,355 | $0 | Tie |
| $60K | $50,390 | $50,390 | $0 | Tie |
| $75K | $61,538 | $61,538 | $0 | Tie |
| $100K | $79,125 | $79,125 | $0 | Tie |
| $120K | $93,195 | $93,195 | $0 | Tie |
| $150K | $113,751 | $113,751 | $0 | Tie |
| $200K | $148,887 | $148,887 | $0 | Tie |
| $250K | $183,264 | $183,264 | $0 | Tie |
| $300K | $215,329 | $215,329 | $0 | Tie |
Take-home pay only tells part of the story. New Hampshire has a cost of living index of 108 while South Dakota is at 92 (national average = 100).
This is a substantial difference. After adjusting for cost of living, $100K in New Hampshire has purchasing power of $73,264 compared to $86,005 in South Dakota. Interestingly, South Dakota wins on purchasing power even though New Hampshire has higher raw take-home pay. The cost of living difference more than offsets the tax advantage.
For a single earner at $100K filing jointly, take-home becomes $84,710 in New Hampshire and $84,710 in South Dakota \u2014 a difference of $0. The gap remains similar regardless of filing status.
On paper, moving from South Dakota to New Hampshire would save $0/year on a $100K salary, or $0 over 5 years. But relocation involves real costs: moving expenses, potentially buying/selling a home, changing jobs, and adjusting to a new community.
At $0/year, the tax difference alone likely isn’t worth relocating for. Other factors — job market, lifestyle, family — should drive the decision. The tax savings are a nice bonus if you’re already considering the move for other reasons.