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East Coast native here and I've been looking at relocating.
Already checked out Iowa and Nebraska and almost had to scream at how high their tax burdens are.
They're higher than even in Maryland, a bastion of ridiculousness, which should be a warning sign to some Mid-Westerners (Wisconsin and Minnesota are terrible too). One poster claimed that retirees are leaving Nebraska in droves simply because they can no longer afford the property taxes on their paid-off homes.
How much better is South Dakota? Not having a state income tax seems fantastic, but what about local tax burdens? I understand it'll vary based on county and city, but in general how bad is it? I like mountains (so Rapid City seems neat), but overall Sioux Falls seems like a growing city (and likely incredibly friendly).
It all depends on which tax you want to pay. The state sales and use tax is 4% with many cities tacking a 2% sales and use tax to fun themselves. Food is also taxed.
Property taxes are higher. Property taxes are used to fund counties and school districts. Some entities form tax districts to fund things like fire departments or other things for the public good.
As others have said property taxes are higher here but that varies from county to county. And it depends on your lifestyle. If you are earning a lot of money and living in a modest home then the SD tax system works in your favor.
If you are truly looking for the all around lowest tax burden in the region it's hard to beat Wyoming. The downside is you have to live in Wyoming.
South Dakota rates well and lands in the more affordable side of the top 15-20 of the 50 states. Tax burden of course depends on your bracket, cost of living, and which things you're likely to invest more in so the burden charts tend to vary, depending on their focus/factors studied.
COL in SD is ridiculously low, even when property taxes are high the overall burden is low because property values are so shockingly low. If you have already made your money and are retiring or can find a good job South Dakota is great. Wyoming also is great for taxes but it is more western than Midwestern and doesn't really have the same proximity to cities.
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