North Dakota vs South Dakota:
Take-Home Pay Comparison
Side-by-side tax comparison between North Dakota (2.5% 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: North Dakota vs South Dakota
South Dakota has no state income tax, while North Dakota uses a graduated system with rates of 0-1.95-2.5%. On a $100K salary, this creates a state tax difference of $1,625/year that South Dakota residents simply don’t pay.
North Dakota’s graduated brackets mean the gap between these two states widens at higher salaries. At $200K, the state tax difference grows to $3,250/year, while at $50K it’s only $813.
Take-Home at Every Salary Level
South Dakota wins at 10 out of 10 salary levels tested. The advantage exists but is modest across the income spectrum.
| Salary | North Dakota | South Dakota | Difference | Winner |
|---|---|---|---|---|
| $40K | $33,670 | $34,320 | +$650 | South Dakota |
| $50K | $41,543 | $42,355 | +$813 | South Dakota |
| $60K | $49,415 | $50,390 | +$975 | South Dakota |
| $75K | $60,319 | $61,538 | +$1,219 | South Dakota |
| $100K | $77,500 | $79,125 | +$1,625 | South Dakota |
| $120K | $91,245 | $93,195 | +$1,950 | South Dakota |
| $150K | $111,314 | $113,751 | +$2,438 | South Dakota |
| $200K | $145,637 | $148,887 | +$3,250 | South Dakota |
| $250K | $179,202 | $183,264 | +$4,063 | South Dakota |
| $300K | $210,454 | $215,329 | +$4,875 | South Dakota |
Cost of Living: North Dakota (92) vs South Dakota (92)
Take-home pay only tells part of the story. North Dakota has a cost of living index of 92 while South Dakota is at 92 (national average = 100).
With similar costs of living (92 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: $84,239 in North Dakota 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 $83,085 in North Dakota and $84,710 in South Dakota \u2014 a difference of $1,625. The gap remains similar regardless of filing status.
Should You Move from North Dakota to South Dakota?
On paper, moving from North Dakota to South Dakota would save $1,625/year on a $100K salary, or $8,125 over 5 years. But relocation involves real costs: moving expenses, potentially buying/selling a home, changing jobs, and adjusting to a new community.
At $1,625/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.