Side-by-side tax comparison between South Dakota (no income tax) and Texas (no income tax). See which state lets you keep more at every salary level, and how cost of living changes the picture.
Both South Dakota and Texas 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: South Dakota at 92 vs Texas at 93.
South Dakota wins at 0 out of 10 salary levels tested. The states are evenly matched.
| Salary | South Dakota | Texas | 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. South Dakota has a cost of living index of 92 while Texas is at 93 (national average = 100).
With similar costs of living (92 vs 93), the tax difference is the primary factor. What you see in raw take-home pay is essentially what you get in purchasing power: $86,005 in South Dakota vs $85,081 in Texas.
For a single earner at $100K filing jointly, take-home becomes $84,710 in South Dakota and $84,710 in Texas \u2014 a difference of $0. The gap remains similar regardless of filing status.
On paper, moving from Texas to South Dakota 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.