You’re thinking about it. Everyone seems to be.
Maybe you saw a viral TikTok about the "No Income Tax" lifestyle, or perhaps you’re just tired of sitting in bumper-to-bumper traffic while half your paycheck disappears into a state-mandated void. Moving to South Dakota sounds like a dream on paper. It's the frontier. It's freedom. It’s... really, really windy.
Let’s be honest: South Dakota is having a moment. According to United Van Lines' latest migration data, the state consistently ranks among the top destinations for people fleeing high-cost coastal hubs. But if you think you’re just moving to a cheaper version of Colorado or a flatter version of Montana, you’re in for a massive reality check. This isn't just a change of address; it's a total recalibration of how you live your life.
The Tax Myth vs. The Reality of Your Wallet
People move to South Dakota for the taxes. Well, the lack of them.
It is one of only nine states without a corporate or individual income tax. That’s huge. If you’re a remote worker pulling $100,000 a year from a company in California or New York, you basically just gave yourself a massive raise the second you unpack your boxes in Sioux Falls. But here is the thing people forget to mention: the government still needs to keep the lights on.
How do they do it? Sales tax and property tax.
The state sales tax is around 4.2%, and cities can add up to another 2% on top of that. And yes, that applies to groceries. Coming from a state where food isn’t taxed, that first trip to Hy-Vee might sting a bit. Then there are the property taxes. They aren't Texas-level astronomical, but they aren't "dirt cheap" either. Depending on your county—especially in growing areas like Lincoln or Minnehaha—you might find that your property tax bill eats up a chunk of those income tax savings.
Still, for most people, the math works out in their favor. It’s just not a "get out of paying for society free" card.
Two States, One Name: The East River vs. West River Divide
You can’t talk about moving to South Dakota without understanding the "River" divide. The Missouri River splits the state down the middle, and it might as well be a border between two different planets.
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East River is where the people are.
Sioux Falls is the crown jewel here. It’s a legitimate city with a booming medical sector—Sanford Health and Avera Health are absolute titans in the region—and a surprisingly cool downtown. You’ve got the Big Sioux River falls, high-end dining like Parker’s Bistro, and a growing tech scene. It feels like the Midwest. It’s green, it’s humid in the summer, and it’s dominated by agriculture and finance.
West River is where the postcards are.
Rapid City is the hub, but the real draw is the Black Hills. This is the Old West. Ponderosa pines, granite peaks, and bison roaming through Custer State Park. It’s rugged. It’s drier. It’s where you go if you want to spend your weekends hiking Black Elk Peak or getting lost in the Badlands.
If you move to the East, you're getting a suburban/urban hybrid experience. If you move to the West, you're getting the Great American Outdoors. Choose wisely, because driving between the two takes a solid five hours across a whole lot of nothing but sunflowers and wind turbines.
The Weather Isn't a Joke, It’s a Personality Trait
We need to talk about the wind. Everyone warns you about the cold, but they never warn you about the wind.
In South Dakota, the wind doesn't just blow; it attacks. It’s a constant, relentless force that can make a 20°F day feel like -10°F. If you’re moving from a place where a "breeze" is something that rustles leaves, prepare to have your car door nearly ripped out of your hand in a grocery store parking lot.
Winter is a marathon. It starts in late October and can stubbornly hang on until May. There will be days when the "Incredible" happens—the interstate closes. I-90 and I-29 aren't just roads; they are the lifelines of the state. When the blizzards hit, the gates come down. You’re stuck. You learn to keep a "winter kit" in your trunk with blankets, candles, and a shovel because sliding into a ditch isn't a "maybe," it's a "when."
But summer?
Summer in the Dakotas is magical. The days are incredibly long, the sunsets turn the sky into a bruised purple and orange masterpiece, and the humidity (mostly in the East) makes everything lush. Just watch out for the thunderstorms. They produce hail the size of golf balls that will absolutely shred your roof and dimple your truck.
The Job Market: Beyond the Farm
You aren't going to be a corn farmer.
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Unless you are, but most people moving here are looking for corporate or specialized roles. The job market in South Dakota is tighter than a new pair of boots. Unemployment is famously low, often hovering under 3%.
- Banking: Sioux Falls is a credit card processing powerhouse thanks to favorable usury laws passed decades ago. Citi, Wells Fargo, and Capital One have massive footprints here.
- Healthcare: As mentioned, Sanford and Avera are the state's largest employers. If you're a nurse, doctor, or lab tech, you'll find plenty of work.
- Manufacturing and Bio-Tech: Companies like Raven Industries are doing wild things with autonomous farming and high-altitude balloons.
The catch? Wages can be lower than what you’re used to in Seattle or Chicago. The "cost of living adjustment" is real. You’ll pay less for a house, but your salary might take a 15% hit. You have to do the "lifestyle math" to see if it actually balances out.
The Culture Shock: "South Dakota Nice"
People are friendly. Truly.
If your car breaks down on a rural road, three people will pull over within ten minutes to help. But there’s a nuance to it. It’s a "mind your own business" kind of friendliness. South Dakotans value self-reliance and privacy. They don't care how you did things back in Portland. In fact, if you start every sentence with "Well, in California we used to..." you’ll find the hospitality cooling off pretty quickly.
There is a deep sense of community, but it’s built on showing up. You show up to the high school football games. You show up for the pancake feed at the church. You show up when your neighbor’s basement floods. It’s an earn-your-stripes kind of place.
The Housing Crisis You Didn't Expect
You might think you can sell your 900-square-foot condo in San Francisco and buy a mansion in South Dakota for cash.
Five years ago? Maybe. Today? It’s tougher.
The secret is out. In Sioux Falls and Rapid City, the housing inventory is incredibly low. People are bidding over asking price. New developments are popping up in cornfields overnight, but they can't build them fast enough. Rent has also spiked. While it’s still significantly cheaper than the national average, the days of finding a nice three-bedroom rental for $900 are mostly over. Expect to pay closer to $1,600 or $2,000 for something decent in a good school district.
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Rural Living vs. Town Living
Living "in town" means you have high-speed internet (South Dakota actually has some of the best fiber-optic coverage in the country thanks to rural telecomm cooperatives) and a Target within ten minutes.
Living "rural" means you might be on a well and a septic tank. It means you’re responsible for plowing your own driveway—which could be a quarter-mile long—when three feet of snow drops overnight. It’s peaceful, sure. The stars are bright enough to guide a ship by. But it's also a lot of work. If you aren't handy with a wrench or a snowblower, stick to the city limits.
What No One Tells You About the Food
Prepare yourself: the Mexican food situation is... improving, but it's not what you're used to.
South Dakota cuisine is dominated by "Chislic." If you don't know what that is, you'll learn fast. It’s basically cubed meat (usually lamb or beef) that is deep-fried and served with toothpicks and saltine crackers. It sounds simple. It is. It’s also delicious.
There is also a massive influence from German and Scandinavian heritage. You’ll find kuchen (the state dessert, a sort of custard cake) and lefse. And yes, people really do eat "hot dish" (casserole).
However, the culinary scene is evolving. Sioux Falls has a world-class pastry shop called CH Patisserie, run by a World Pastry Champion. There are Ethiopian spots, sushi bars, and craft breweries like Fernson that can compete with anything in Asheville or Portland. You just have to look a little harder for them.
Moving to South Dakota: The Hard Truths
Let's look at the stuff that isn't in the brochures.
- Political Climate: It is a deep red state. If you have very progressive views, you might feel like a lonely island, especially in rural areas. That said, the cities are more purple than you’d think.
- Alcohol Culture: South Dakota drinks. A lot. It’s often ranked near the top for binge drinking. Social life revolves heavily around the local bar, especially in small towns where there isn't much else to do on a Tuesday night in February.
- Distance: Everything is far away. If you want to see a major concert or go to a professional sports game, you’re likely driving four hours to Minneapolis or Omaha. You get used to "The Big Drive." A two-hour trip for a specific shopping run is considered a casual afternoon.
Actionable Steps for Your Move
If you’re serious about making the jump, don't just wing it.
- Visit in February. Anyone can love South Dakota in July when the sunflowers are blooming. Go when it’s -5°F and the wind is howling. If you can handle the "Siberia of the Plains" for three days without losing your mind, you’ll survive the move.
- Check the Internet. If you’re a remote worker, use the South Dakota Telecommunications Association (SDTA) maps to see which rural areas have fiber. You’d be surprised—some tiny towns have better speeds than downtown Minneapolis.
- Register your vehicle fast. South Dakota makes it easy, but you'll want to get your plates and driver's license swapped over to start establishing residency for those tax benefits.
- Invest in "The Gear." Don't buy a cheap coat at a big-box store. Get a real parka (down-filled, wind-resistant), high-quality wool socks (Darn Tough or Smartwool), and a heavy-duty ice scraper.
Moving to South Dakota is a trade-off. You give up the convenience and "hustle" of a major metro for space, safety, and a much larger bank account. It’s a slower pace, but it’s not an easy pace. It’s a place that rewards people who aren't afraid of a little grit and a lot of wind.
If you can handle the winter, the state will give you back a quality of life that’s increasingly hard to find anywhere else in America. Just remember to hold onto your hat. Literally.