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Arkansas vs South Dakota: which state is better to live in?

South Dakota costs a median household about $1,300 a year less in state and local taxes than Arkansas, mostly because it has no income tax, though everyday prices run higher there (cost of living index 95 against 85).

Arkansas

Moderate tax burden · COL index 85

Wins 5 categories

VS

South Dakota

Low tax burden · COL index 95

Wins 9 categories

Taxes: Arkansas vs South Dakota

Arkansas has a graduated income tax topping out at 3.9%, which works out to 3.6% on a median income of $74,580, or $2,680 a year. South Dakota has no state income tax. South Dakota wins on income tax at 2026 rates.

Property tax is 0.60% of home value a year in Arkansas and 1.08% in South Dakota (Tax Foundation, 2023); on each state's median home that is $1,170 against $3,348, so Arkansas has the lower rate.

Combined state and local sales tax averages 9.46% in Arkansas 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: $5,966 a year in Arkansas, $4,715 in South Dakota. South Dakota is cheaper on total state and local tax.

Housing and cost of living

Arkansas's cost of living index is 85 and South Dakota's is 95, where 100 is the national average; Arkansas is about 12% cheaper day to day.

The median home costs $195K in Arkansas and $310K in South Dakota (Zillow, 2024), a $115K gap in Arkansas's favor. A two-bedroom rents for about $970 a month in Arkansas and $1,150 in South Dakota.

Home insurance averages $2,600 a year in Arkansas and $2,100 in South Dakota, so South Dakota is cheaper to insure.

Safety

Violent crime runs 619 incidents per 100,000 residents in Arkansas and 388 in South Dakota (FBI Crime Data Explorer, 2023); South Dakota is the safer state by that measure, with a rate 60% lower. Property crime is 2,469 per 100,000 in Arkansas against 2,027 in South Dakota, again favoring South Dakota.

Health

Life expectancy is 73.8 years in Arkansas and 78.2 in South Dakota (County Health Rankings, 2024), a 4.4-year edge for South Dakota. The Commonwealth Fund's 2023 scorecard ranks Arkansas's health system 44th of 50 and South Dakota's 28th, so South Dakota scores better on care.

9.4% of Arkansas 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 Arkansas's K-12 schools 42nd in the country and South Dakota's 31st, 11 places apart in South Dakota's favor. Arkansas runs a school-choice voucher program; South Dakota does not.

Laws and politics

In the 2024 presidential election Arkansas went to Trump by 28 points and South Dakota went to Trump by 27 points.

Arkansas 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 medical only in both as of 2026. The minimum wage is $11.00 an hour in Arkansas and $11.20 in South Dakota.

Climate and risk

Natural disaster risk is high in Arkansas (tornado, flood) and moderate in South Dakota (blizzard, tornado, drought), so South Dakota is the lower-risk state. Annual average air quality index is 35 in Arkansas 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 tax year 2026 rates, last checked against state sources on 2026-09-14. The table below has every number.

Arkansas
South Dakota

Taxes

3.9%
Income Tax (top rate)
None
0.6%/yr
Property Tax Rate
1.08%/yr
9.46%
Sales Tax (avg)
6.11%
No
Taxes Social Security
No
No
Estate Tax
No
As income
Capital Gains Tax
None

Housing & Cost of Living

85
COL Index (100=avg)
95
$195K
Median Home Price
$310K
$970/mo
Median Rent (2BR/mo)
$1,150/mo
$3K/yr
Home Insurance (avg/yr)
$2K/yr

Crime & Safety

619
Violent Crime / 100K
388
2,469
Property Crime / 100K
2,027
645
Sex Offenders / 100K
475
90
Homeless / 100K
145

Healthcare

#44 of 50
Healthcare Quality Rank
#28 of 50
73.8 yrs
Life Expectancy
78.2 yrs
9.4%
Uninsured Rate
9%
Yes
Medicaid Expansion
Yes

Education

#42 of 50
K-12 Quality Rank
#31 of 50
Yes
School Choice / Vouchers
No

Childcare

$820/mo
Avg Infant Care / mo
$900/mo

Utilities & Daily Costs

$130/mo
Avg Energy Bill / mo
$130/mo
$390/mo
Avg Groceries / mo
$460/mo
#22 of 50
Road Quality Rank
#2 of 50

Social Policy

F
Gun Laws Grade
F
R+28.0
2024 Presidential Margin
R+27.0

Category wins

5

Arkansas

9

South Dakota

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Questions people ask

Is Arkansas 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 $5,966); Arkansas on everyday costs (index 85 against 95); South Dakota on safety (388 violent crimes per 100,000 against 619); South Dakota on schools (ranked 31st against 42nd).

Which is cheaper, Arkansas or South Dakota?

Arkansas is cheaper day to day: cost of living index 85 against 95. The median home is $195K in Arkansas and $310K in South Dakota (2024). On state and local taxes South Dakota saves a median household about $1,300 a year.

Does Arkansas or South Dakota have lower taxes?

South Dakota. A household earning $74,580 pays about $5,966 a year in Arkansas ($2,680 income tax, $1,170 property tax on the median home and $2,117 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, Arkansas or South Dakota?

South Dakota, on the FBI's 2023 figures. Violent crime is 619 per 100,000 residents in Arkansas and 388 in South Dakota; property crime is 2,469 against 2,027.

Which has better schools, Arkansas or South Dakota?

South Dakota. Education Week's 2023 Quality Counts report ranks Arkansas 42nd of 50 for K-12 and South Dakota 31st. Arkansas also offers school-choice vouchers.

Is Arkansas or South Dakota better for retirees?

South Dakota is friendlier to retirees on paper. Arkansas 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 $1,170 a year in Arkansas and $3,348 in South Dakota.

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