South Dakota Salaries 2025
No income tax with surprising financial services hub
Median Household Income
South Dakota Salary Overview 2025
South Dakota is one of only nine states with no personal income tax, creating significant advantage for workers. The state's median household income of $66,000 approaches the national average, while low costs (92 index) and zero state tax maximize take-home pay.
Sioux Falls has emerged as an unlikely financial services hub—favorable banking laws have attracted credit card operations from Citibank, Wells Fargo, and others. Healthcare (Sanford Health, Avera) provides stable employment. Rapid City serves as gateway to the Black Hills and tourism.
South Dakota offers exceptional tax advantage with genuine job opportunities in specific sectors. For those willing to embrace prairie lifestyle and harsh winters, the economics are compelling. For comprehensive salary data, see salary trends 2025.
Salaries by South Dakota Region
Sioux Falls – Economic Engine
Median Household Income: $70,000
Sioux Falls is South Dakota's largest city and economic center. Financial services (Citibank, Wells Fargo credit card operations), healthcare (Sanford Health HQ, Avera), and growing tech scene. Finance professionals $55,000-$100,000, healthcare competitive, software $70,000-$115,000. Affordable ($320,000 median) with genuine urban amenities.
Rapid City – Black Hills Gateway
Median Household Income: $58,000
Tourism (Mount Rushmore, Sturgis), Ellsworth Air Force Base, and healthcare. More limited professional opportunities but exceptional outdoor access. Affordable ($330,000 median).
Aberdeen, Brookings, Vermillion
Median Household Income: $52,000-$58,000
Smaller cities with university presence (SDSU in Brookings, USD in Vermillion). Agriculture, education, and healthcare. Very affordable ($220,000-$280,000 median homes).
| Region | Median Income | Median Home | Key Industries |
|---|---|---|---|
| Sioux Falls | $70,000 | $320,000 | Finance, Healthcare |
| Rapid City | $58,000 | $330,000 | Tourism, Military |
| Brookings | $55,000 | $280,000 | Education, Ag Tech |
Top Paying Industries in South Dakota
Financial Services
South Dakota's favorable banking laws (no usury caps) attracted credit card operations. Citibank, Wells Fargo, and regional banks employ thousands in Sioux Falls. Customer service $35,000-$50,000, analysts $55,000-$85,000, management $70,000-$120,000. Entry point to finance careers.
Healthcare
Sanford Health (HQ in Sioux Falls) is one of the largest rural health systems nationally. Avera Health adds competition. Physicians $260,000-$400,000+ (rural incentives significant), nurses $55,000-$75,000, administrators $70,000-$130,000.
Agriculture & Ag Tech
Large-scale farming, livestock, and emerging agricultural technology. Farm income varies with commodity prices. Precision agriculture creates tech employment.
| Industry | Entry Level | Mid-Career | Senior Level |
|---|---|---|---|
| Financial Services | $40,000 | $65,000 | $100,000+ |
| Healthcare (Physicians) | $260,000 | $340,000 | $400,000+ |
| Software Engineering | $55,000 | $80,000 | $115,000+ |
South Dakota Tax Advantage
Income Tax: 0% – South Dakota has no personal income tax.
| Salary | SD Tax | MN Tax | Annual Savings |
|---|---|---|---|
| $60,000 | $0 | ~$3,800 | $3,800 |
| $80,000 | $0 | ~$5,400 | $5,400 |
| $100,000 | $0 | ~$7,200 | $7,200 |
For workers near the Minnesota border (Sioux Falls), living in SD while accessing MN job market creates significant tax arbitrage.
Property Tax: Average 1.22%—moderate.
Sales Tax: 4.5% state + local = 6-7% typical.
Highest Paying Jobs in South Dakota 2025
| Occupation | Average Salary | Top 10% Earn |
|---|---|---|
| Physicians/Surgeons | $280,000 | $400,000+ |
| Dentists | $165,000 | $240,000+ |
| IT Directors | $115,000 | $150,000+ |
| Pharmacists | $115,000 | $135,000+ |
| Financial Managers | $100,000 | $140,000+ |
Frequently Asked Questions
Is 0% income tax really worth it?
For high earners, absolutely. Someone earning $100,000 saves $7,000+ annually vs. Minnesota. Combined with lower costs, purchasing power advantage is substantial. For lower earners, savings are smaller but still meaningful.
How are the winters?
Harsh. Sioux Falls averages 0°F in January with significant wind chill. Blizzards common. Those from cold climates adapt; those from warm areas should visit in January before committing.
Is there actually a job market?
In Sioux Falls, yes—particularly financial services and healthcare. Unemployment consistently low. Outside Sioux Falls and Rapid City, opportunities are limited. Remote work with SD residency is increasingly popular.