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

South Dakota costs a median household about $4,200 a year less in state and local taxes than Maryland, mostly because it has no income tax.

Maryland

High tax burden · COL index 116

Wins 6 categories

VS

South Dakota

Low tax burden · COL index 95

Wins 10 categories

Taxes: Maryland vs South Dakota

Maryland has a graduated income tax topping out at 5.75%, which works out to 4.7% on a median income of $74,580, or $3,490 a year. South Dakota has no state income tax. South Dakota wins on income tax at 2026 rates.

Property tax is 0.97% of home value a year in Maryland and 1.08% in South Dakota (Tax Foundation, 2023); on each state's median home that is $4,074 against $3,348, so Maryland has the lower rate.

Combined state and local sales tax averages 6.00% in Maryland and 6.11% in South Dakota; Maryland is lower.

Add it up for a household earning $74,580 (the 2022 national median) and owning the median home: $8,906 a year in Maryland, $4,715 in South Dakota. South Dakota is cheaper on total state and local tax.

Housing and cost of living

Maryland's cost of living index is 116 and South Dakota's is 95, where 100 is the national average; South Dakota is about 22% cheaper day to day.

The median home costs $420K in Maryland and $310K in South Dakota (Zillow, 2024), a $110K gap in South Dakota's favor. A two-bedroom rents for about $1,950 a month in Maryland and $1,150 in South Dakota.

Home insurance averages $1,600 a year in Maryland and $2,100 in South Dakota, so Maryland is cheaper to insure.

Safety

Violent crime runs 468 incidents per 100,000 residents in Maryland and 388 in South Dakota (FBI Crime Data Explorer, 2023); South Dakota is the safer state by that measure, with a rate 21% lower. Property crime is 1,734 per 100,000 in Maryland against 2,027 in South Dakota, again favoring Maryland.

Health

Life expectancy is 77.4 years in Maryland and 78.2 in South Dakota (County Health Rankings, 2024), a 0.8-year edge for South Dakota. The Commonwealth Fund's 2023 scorecard ranks Maryland's health system 12th of 50 and South Dakota's 28th, so Maryland scores better on care.

6.5% of Maryland residents have no health insurance against 9.0% in South Dakota, which favors Maryland. Both states expanded Medicaid.

Schools

Education Week's 2023 Quality Counts report ranks Maryland's K-12 schools 4th in the country and South Dakota's 31st, 27 places apart in Maryland's favor. Neither state runs a school-choice voucher program.

Laws and politics

In the 2024 presidential election Maryland went to Harris by 24 points and South Dakota went to Trump by 27 points.

Maryland has may-issue carry permits and a Giffords gun-law grade of A; South Dakota has permitless carry and a grade of F, so Maryland regulates guns more tightly and South Dakota is the friendlier state for gun owners.

Abortion is protected by state law in Maryland and banned with narrow exceptions in South Dakota, and marijuana is legal for adults in Maryland and medical only in South Dakota as of 2026. The minimum wage is $15.00 an hour in Maryland and $11.20 in South Dakota.

Climate and risk

Natural disaster risk is moderate in Maryland (hurricane, flood) and moderate in South Dakota (blizzard, tornado, drought). Annual average air quality index is 40 in Maryland 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.

Maryland
South Dakota

Taxes

5.75%
Income Tax (top rate)
None
0.97%/yr
Property Tax Rate
1.08%/yr
6%
Sales Tax (avg)
6.11%
Yes
Social Security Tax
Yes
No
Estate Tax
Yes
As income
Capital Gains Tax
None

Housing & Cost of Living

116
COL Index (100=avg)
95
$420K
Median Home Price
$310K
$1,950/mo
Median Rent (2BR/mo)
$1,150/mo
$2K/yr
Home Insurance (avg/yr)
$2K/yr

Crime & Safety

468
Violent Crime / 100K
388
1,734
Property Crime / 100K
2,027
118
Sex Offenders / 100K
475
97
Homeless / 100K
145

Healthcare

#12 of 50
Healthcare Quality Rank
#28 of 50
77.4 yrs
Life Expectancy
78.2 yrs
6.5%
Uninsured Rate
9%
Yes
Medicaid Expansion
Yes

Education

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

Childcare

$1,850/mo
Avg Infant Care / mo
$900/mo

Utilities & Daily Costs

$145/mo
Avg Energy Bill / mo
$130/mo
$580/mo
Avg Groceries / mo
$460/mo
#33 of 50
Road Quality Rank
#2 of 50

Social Policy

A
Gun Laws Grade
F
D+24.0
2024 Presidential Margin
R+27.0

Category wins

6

Maryland

10

South Dakota

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Questions people ask

Is Maryland 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 $8,906); South Dakota on everyday costs (index 95 against 116); South Dakota on safety (388 violent crimes per 100,000 against 468); Maryland on schools (ranked 4th against 31st).

Which is cheaper, Maryland or South Dakota?

South Dakota is cheaper day to day: cost of living index 95 against 116. The median home is $420K in Maryland and $310K in South Dakota (2024). On state and local taxes South Dakota saves a median household about $4,200 a year.

Does Maryland or South Dakota have lower taxes?

South Dakota. A household earning $74,580 pays about $8,906 a year in Maryland ($3,490 income tax, $4,074 property tax on the median home and $1,342 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, Maryland or South Dakota?

South Dakota, on the FBI's 2023 figures. Violent crime is 468 per 100,000 residents in Maryland and 388 in South Dakota; property crime is 1,734 against 2,027.

Which has better schools, Maryland or South Dakota?

Maryland. Education Week's 2023 Quality Counts report ranks Maryland 4th of 50 for K-12 and South Dakota 31st.

Is Maryland or South Dakota better for retirees?

South Dakota is friendlier to retirees on paper. Maryland does not tax Social Security, partly exempts pensions and has an estate tax; South Dakota does not tax Social Security, exempts pensions and has no estate or inheritance tax. Property tax on a median home is $4,074 a year in Maryland and $3,348 in South Dakota.

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Cost of living proxy for childcare affordability

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