Side-by-side tax comparison between South Dakota (no income tax) and Virginia (5.75% top rate, graduated). See which state lets you keep more at every salary level, and how cost of living changes the picture.
South Dakota has no state income tax, while Virginia uses a graduated system with rates of 2-5.75%. On a $100K salary, this creates a state tax difference of $3,738/year that South Dakota residents simply don’t pay.
Virginia’s graduated brackets mean the gap between these two states widens at higher salaries. At $200K, the state tax difference grows to $7,475/year, while at $50K it’s only $1,869.
South Dakota wins at 10 out of 10 salary levels tested. The advantage is consistent and significant across the income spectrum.
| Salary | South Dakota | Virginia | Difference | Winner |
|---|---|---|---|---|
| $40K | $34,320 | $32,825 | −$1,495 | South Dakota |
| $50K | $42,355 | $40,486 | −$1,869 | South Dakota |
| $60K | $50,390 | $48,148 | −$2,243 | South Dakota |
| $75K | $61,538 | $58,734 | −$2,803 | South Dakota |
| $100K | $79,125 | $75,388 | −$3,738 | South Dakota |
| $120K | $93,195 | $88,710 | −$4,485 | South Dakota |
| $150K | $113,751 | $108,145 | −$5,606 | South Dakota |
| $200K | $148,887 | $141,412 | −$7,475 | South Dakota |
| $250K | $183,264 | $173,920 | −$9,344 | South Dakota |
| $300K | $215,329 | $204,116 | −$11,213 | South Dakota |
Take-home pay only tells part of the story. South Dakota has a cost of living index of 92 while Virginia is at 103 (national average = 100).
The cost of living gap is moderate. After adjustment, $100K has purchasing power of $86,005 in South Dakota vs $73,192 in Virginia. The take-home winner also wins on purchasing power.
For a single earner at $100K filing jointly, take-home becomes $84,710 in South Dakota and $80,973 in Virginia \u2014 a difference of $3,738. The gap remains similar regardless of filing status.
On paper, moving from Virginia to South Dakota would save $3,738/year on a $100K salary, or $18,688 over 5 years. But relocation involves real costs: moving expenses, potentially buying/selling a home, changing jobs, and adjusting to a new community.
The $3,738/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.