Side-by-side tax comparison between South Dakota (no income tax) and Wisconsin (7.65% 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 Wisconsin uses a graduated system with rates of 3.5-7.65%. On a $100K salary, this creates a state tax difference of $4,973/year that South Dakota residents simply don’t pay.
Wisconsin’s graduated brackets mean the gap between these two states widens at higher salaries. At $200K, the state tax difference grows to $9,945/year, while at $50K it’s only $2,486.
South Dakota wins at 10 out of 10 salary levels tested. The advantage is consistent and significant across the income spectrum.
| Salary | South Dakota | Wisconsin | Difference | Winner |
|---|---|---|---|---|
| $40K | $34,320 | $32,331 | −$1,989 | South Dakota |
| $50K | $42,355 | $39,869 | −$2,486 | South Dakota |
| $60K | $50,390 | $47,407 | −$2,984 | South Dakota |
| $75K | $61,538 | $57,808 | −$3,729 | South Dakota |
| $100K | $79,125 | $74,153 | −$4,973 | South Dakota |
| $120K | $93,195 | $87,228 | −$5,967 | South Dakota |
| $150K | $113,751 | $106,292 | −$7,459 | South Dakota |
| $200K | $148,887 | $138,942 | −$9,945 | South Dakota |
| $250K | $183,264 | $170,833 | −$12,431 | South Dakota |
| $300K | $215,329 | $200,411 | −$14,918 | South Dakota |
Take-home pay only tells part of the story. South Dakota has a cost of living index of 92 while Wisconsin 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 $79,734 in Wisconsin.
For a single earner at $100K filing jointly, take-home becomes $84,710 in South Dakota and $79,738 in Wisconsin \u2014 a difference of $4,973. The gap remains similar regardless of filing status.
On paper, moving from Wisconsin to South Dakota would save $4,973/year on a $100K salary, or $24,863 over 5 years. But relocation involves real costs: moving expenses, potentially buying/selling a home, changing jobs, and adjusting to a new community.
The $4,973/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.