Both South Dakota and Wyoming have no state income tax (0%), making them two of the most tax-friendly states. However, Wyoming has significantly lower property taxes (0.56% vs SD's 1.14%) and lower sales tax (5.36% vs 6.40%). Overall, Wyoming offers slightly lower taxes, while South Dakota offers better amenities (Sioux Falls metro) and more job opportunities. Both states attract remote workers, retirees, and those fleeing high-tax states.

By Daniel, Founder of CountryTaxCalc

Daniel has spent 5+ years researching tax systems across 95+ countries and all US states to make tax comparison accessible to everyone. For corrections, contact us.

Last Updated: April 2026

The Big Picture

⛰️ South Dakota

0%

No Income Tax

Constitutional prohibition

🦬 Wyoming

0%

No Income Tax

Constitutional prohibition

Typical Annual Savings

At $100,000 income:

$0

That is $0/month back in your pocket!

Tax Savings by Income Level

IncomeSD TaxWY TaxSavings10-Year
$50,000 $0$0$0$0
$100,000 $0$0$0$0
$200,000 $0$0$0$0
$500,000 $0$0$0$0
💡

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South Dakota Pros and Cons

✅ Pros

  • Better amenities: Sioux Falls 280K metro (vs Cheyenne 100K)
  • More jobs: Finance, healthcare, retail (vs WY resource extraction)
  • Faster growth: Population +8.5% vs WY +2.3% (2020-2026)
  • Outdoor recreation: Badlands, Mount Rushmore, Black Hills
  • Lower cost of living: Housing 12% cheaper than Wyoming

❌ Cons

  • Higher property tax: 1.14% (vs WY 0.56%) costs $1,450-$5,800 more/year
  • Higher sales tax: 6.40% (vs WY 5.36%) costs $104 more/year
  • Harsh winters: -20°F, blizzards (similar to WY)
  • Limited diversity: 88% white (vs WY 85%)
  • Flatlands: Less dramatic scenery than WY mountains

Wyoming Pros and Cons

✅ Pros

  • Lower property tax: 0.56% (lowest in US) saves $1,450-$5,800/year
  • Lower sales tax: 5.36% (vs SD 6.40%) saves $104/year
  • Mineral revenue: State funded by oil/gas/coal (no need for high taxes)
  • Dramatic scenery: Grand Tetons, Yellowstone, mountain ranges
  • Outdoor paradise: Skiing, hiking, fishing, hunting

❌ Cons

  • Very remote: Cheyenne only 100K, Jackson 10K (vs Sioux Falls 280K)
  • Limited jobs: Resource extraction dominant, few other opportunities
  • Harsh winters: -30°F, heavy snow (similar to SD)
  • Expensive housing: Jackson Hole $1.5M+ median (wealthy enclaves)
  • Brain drain: Young professionals leave for Denver/Salt Lake

Frequently Asked Questions

Q: Both states have 0% income tax—what's the real difference?

Property and sales taxes. Wyoming has much lower property tax (0.56% vs SD 1.14%). On a $500k home, WY pays $2,800/year vs SD $5,700/year—difference of $2,900/year. WY also has lower sales tax (5.36% vs 6.40%). Total tax advantage: WY saves ~$3,000/year. However, SD has better job market (Sioux Falls) and lower housing costs (12% cheaper overall).

Q: Why does Wyoming have such low property taxes?

Mineral revenue. Wyoming generates massive revenue from oil, gas, and coal extraction on state and federal lands. This revenue funds state services, reducing need for property/income taxes. SD doesn't have significant mineral resources, so relies more on property/sales taxes. WY's low tax rates are sustainable as long as energy demand continues.

Q: Which state is better for remote workers?

South Dakota wins for remote workers: better internet infrastructure (Sioux Falls fiber), more amenities (restaurants, shopping, healthcare), lower housing costs (12% cheaper), and proximity to Minneapolis (3.5 hours). Wyoming appeals to those who prioritize outdoor recreation (Yellowstone, Grand Tetons) and don't mind isolation. Both have 0% income tax—perfect for high earners.

Q: Is there significant migration between the two states?

Very little direct migration—only 147 people moved SD → WY and 132 moved WY → SD in 2023. Both states primarily gain residents from California, Illinois, and New York. SD growing faster (+8.5% vs WY +2.3%) due to Sioux Falls job growth. WY population relatively stable. Choose based on lifestyle preferences (amenities vs outdoor recreation).

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