Financial Benefits of Moving to South Dakota
Living in South Dakota means enjoying a scenic environment in a welcoming community. This is a unique state to reside in for many reasons, from its small-town atmosphere to its glacial lakes and national forests. While South Dakota comes with its own share of cons, such as extreme seasons, the pros of unspoiled nature and, best of all, tax benefits make relocation worth considering. To get started, check out our piece on relocating to a tax-friendly state. We cover the basics on retiring or relocating to a state with tax advantages.
Sales Tax and Cost of Living in South Dakota
Like other states deemed “tax-friendly” in the United States, South Dakota has no state income tax. This can take remote workers and retirees a long way when it comes to saving money to put toward other expenses. States that do not have income taxes are a great option to look into, because you’re taking home more of your paycheck and have more access to the money you’ve saved for retirement. Social Security, public or private pensions and any retirement accounts, like your 401(k), will be exempt from being taxed at the state level.
In addition to this, South Dakota has a low cost of living and is an affordable place to settle compared to many other states. Although the prices of homes are expected to continue rising, this state still ranks high for housing affordability. It also boasts a sales tax with a base tax of only 4.5%, making it one of the lowest in the U.S. Looking for more tax saving strategies to help you save a bit more this year? Give our content on beating capital gains a read here.
If you are considering a move to South Dakota, be sure you understand what you need to do to establish domicile by downloading our checklist.
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The views expressed are for commentary purposes only and do not take into account any individual personal, financial, legal or tax considerations. As such, the information contained herein is not intended to be personal legal, investment or tax advice. Nothing herein should be relied upon as such, and there is no guarantee that any claims made will come to pass. The opinions are based on information and sources of information deemed to be reliable, but Mariner Wealth Advisors does not warrant the accuracy of the information.
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