State comparison
Arizona vs South Dakota: which state is better to live in?
South Dakota costs a median household about $1,200 a year less in state and local taxes than Arizona, mostly because it has no income tax.
Arizona
Moderate tax burden · COL index 102
Wins 2 categories
South Dakota
Low tax burden · COL index 95
Wins 13 categories
Taxes: Arizona vs South Dakota
Arizona has a flat 2.5% income tax, which works out to 2.5% on a median income of $74,580, or $1,865 a year. South Dakota has no state income tax. South Dakota wins on income tax at 2026 rates.
Property tax is 0.51% of home value a year in Arizona and 1.08% in South Dakota (Tax Foundation, 2023); on each state's median home that is $2,142 against $3,348, so Arizona has the lower rate.
Combined state and local sales tax averages 8.37% in Arizona and 6.11% in South Dakota; South Dakota is lower.
Add it up for a household earning $74,580 (the 2022 national median) and owning the median home: $5,879 a year in Arizona, $4,715 in South Dakota. South Dakota is cheaper on total state and local tax.
Housing and cost of living
Arizona's cost of living index is 102 and South Dakota's is 95, where 100 is the national average; South Dakota is about 7% cheaper day to day.
The median home costs $420K in Arizona and $310K in South Dakota (Zillow, 2024), a $110K gap in South Dakota's favor. A two-bedroom rents for about $1,600 a month in Arizona and $1,150 in South Dakota.
Home insurance averages $1,850 a year in Arizona and $2,100 in South Dakota, so Arizona is cheaper to insure.
Safety
Violent crime runs 474 incidents per 100,000 residents in Arizona and 388 in South Dakota (FBI Crime Data Explorer, 2023); South Dakota is the safer state by that measure, with a rate 22% lower. Property crime is 2,624 per 100,000 in Arizona against 2,027 in South Dakota, again favoring South Dakota.
Health
Life expectancy is 76.3 years in Arizona and 78.2 in South Dakota (County Health Rankings, 2024), a 1.9-year edge for South Dakota. The Commonwealth Fund's 2023 scorecard ranks Arizona's health system 34th of 50 and South Dakota's 28th, so South Dakota scores better on care.
10.8% of Arizona residents have no health insurance against 9.0% in South Dakota, which favors South Dakota. Both states expanded Medicaid.
Schools
Education Week's 2023 Quality Counts report ranks Arizona's K-12 schools 45th in the country and South Dakota's 31st, 14 places apart in South Dakota's favor. Arizona runs a school-choice voucher program; South Dakota does not.
Laws and politics
In the 2024 presidential election Arizona went to Trump by 5 points and South Dakota went to Trump by 27 points.
Arizona has permitless carry and a Giffords gun-law grade of F; South Dakota has permitless carry and a grade of F.
Abortion is banned with narrow exceptions in both states, and marijuana is legal for adults in Arizona and medical only in South Dakota as of 2026. The minimum wage is $14.35 an hour in Arizona and $11.20 in South Dakota.
Climate and risk
Natural disaster risk is moderate in Arizona (wildfire, extreme-heat, drought) and moderate in South Dakota (blizzard, tornado, drought). Annual average air quality index is 46 in Arizona and 30 in South Dakota (under 50 is good), favoring South Dakota.
Tax figures use a household earning the national median income and owning each state's median home, at rates in force as of 2026-09-04. The table below has every number.
Taxes
Housing & Cost of Living
Crime & Safety
Healthcare
Education
Childcare
Utilities & Daily Costs
Social Policy
Category wins
2
Arizona
13
South Dakota
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Score For My Profile →Questions people ask
Is Arizona or South Dakota better to live in?
South Dakota wins more of the measures that decide a move. South Dakota on taxes ($4,715 a year for a median household against $5,879); South Dakota on everyday costs (index 95 against 102); South Dakota on safety (388 violent crimes per 100,000 against 474); South Dakota on schools (ranked 31st against 45th).
Which is cheaper, Arizona or South Dakota?
South Dakota is cheaper day to day: cost of living index 95 against 102. The median home is $420K in Arizona and $310K in South Dakota (2024). On state and local taxes South Dakota saves a median household about $1,200 a year.
Does Arizona or South Dakota have lower taxes?
South Dakota. A household earning $74,580 pays about $5,879 a year in Arizona ($1,865 income tax, $2,142 property tax on the median home and $1,873 in sales tax) and $4,715 in South Dakota ($0 income tax, $3,348 property tax on the median home and $1,367 in sales tax), at 2026 rates.
Which is safer, Arizona or South Dakota?
South Dakota, on the FBI's 2023 figures. Violent crime is 474 per 100,000 residents in Arizona and 388 in South Dakota; property crime is 2,624 against 2,027.
Which has better schools, Arizona or South Dakota?
South Dakota. Education Week's 2023 Quality Counts report ranks Arizona 45th of 50 for K-12 and South Dakota 31st. Arizona also offers school-choice vouchers.
Is Arizona or South Dakota better for retirees?
South Dakota is friendlier to retirees on paper. Arizona does not tax Social Security, partly exempts pensions and has no estate or inheritance tax; South Dakota does not tax Social Security, exempts pensions and has no estate or inheritance tax. Property tax on a median home is $2,142 a year in Arizona and $3,348 in South Dakota.