South Dakota
$26,042
Combined bill · #6 of 9
- Paycheck tax
- $20,820
- Take-home
- $79,180
- Property tax
- $4,000
- Sales tax
- $1,222
- COL index
- 94.1
- Share of wages
- 26.0%
Compare different states
2026 · no wage PIT
2026 · no wage PITSouth Dakota vs Tennessee no income tax
Tennessee keeps the modeled household bill about $1,220 lower than South Dakota. Neither state taxes wages. One fixed household — single filer, $100,000 wages, $400,000 home, $20,000 of taxable spending — so property and sales decide the gap (paycheck tax is tied).
By Sammy S. · Founder · AuthorUpdated for 2026
Lower combined household bill
Tennessee is less taxed
About $1,220 less per year — roughly $102 a month on identical assumptions.
Side-by-side household scoreboard
Tennessee
$24,822
Combined bill · #3 of 9
- Paycheck tax
- $20,820
- Take-home
- $79,180
- Property tax
- $2,080
- Sales tax
- $1,922
- COL index
- 88.9
- Share of wages
- 24.8%
Line-by-line ladder
Every row uses the same household. The gap column is the annual difference between South Dakota and Tennessee.
| Line | South Dakota | Tennessee | Gap |
|---|---|---|---|
| Paycheck tax (federal + FICA + PFML) | $20,820 | $20,820 | $0 |
| Property tax ($400,000 home) | $4,000 | $2,080 | $1,920 |
| Sales tax ($20,000 basket) | $1,222 | $1,922 | $700 |
| Combined household bill | $26,042 | $24,822 | $1,220 |
| Take-home on $100,000 | $79,180 | $79,180 | $0 |
| COL index | 94.1 | 88.9 | 5.2 |
| Share of gross wages | 26.0% | 24.8% | 1.2 pts |
Paycheck tax (federal + FICA + PFML)
South Dakota$20,820
Tennessee$20,820
Gap $0
Property tax ($400,000 home)
South Dakota$4,000
Tennessee$2,080
Gap $1,920
Sales tax ($20,000 basket)
South Dakota$1,222
Tennessee$1,922
Gap $700
Combined household bill
South Dakota$26,042
Tennessee$24,822
Gap $1,220
Take-home on $100,000
South Dakota$79,180
Tennessee$79,180
Gap $0
COL index
South Dakota94.1
Tennessee88.9
Gap 5.2
Share of gross wages
South Dakota26.0%
Tennessee24.8%
Gap 1.2 pts
Same pair at every preset salary
Home value and taxable spending stay fixed, so the movement here comes from paycheck tax.
$75,000 wages
- South Dakota
- $18,630
- Tennessee
- $17,410
Tennessee lower by $1,220
$100,000 wages
- South Dakota
- $26,042
- Tennessee
- $24,822
Tennessee lower by $1,220
$150,000 wages
- South Dakota
- $41,431
- Tennessee
- $40,211
Tennessee lower by $1,220
Paycheck
Neither state taxes wages. Paycheck tax is tied on this vignette (federal income tax and FICA only).
Property
1.00% in South Dakota vs 0.52% in Tennessee on the same $400,000 home — $1,920 apart.
Sales
6.11% vs 9.61% combined on $20,000 of purchases — $700 apart.
Key takeaways — South Dakota vs Tennessee
- Neither South Dakota nor Tennessee levies a wage income tax in 2026.
- Tennessee is lower overall: $24,822 vs $26,042 — $1,220 a year ($102 a month).
- Paycheck tax: $20,820 in South Dakota vs $20,820 in Tennessee (tied on this vignette).
- Property: $4,000 (1.00%) vs $2,080 (0.52%) — $1,920 apart.
- Sales: $1,222 (6.11%) vs $1,922 (9.61%) — $700 apart.
- COL index: 94.1 in South Dakota vs 88.9 in Tennessee — 5.2 points apart.
- Among the nine no-wage-PIT states, household totals run from $24,018 (Wyoming) to $28,060 (Texas).
South Dakota vs Tennessee with no wage income tax (2026)
Both states are on the nine-state list. This page holds the household constant — $100,000 single-filer wages, a $400,000 home, $20,000 of taxable spending — then adds paycheck tax, property tax, and sales tax so neither state can look cheaper just by skipping wage PIT.
Tennessee models the lower total by $1,220 a year. Read the line items — the winner often wins on property or sales, not on the paycheck.
South Dakota does not tax wages. Property tax is the larger add-on versus Wyoming or Nevada on this vignette. Tennessee does not tax wages. The Hall tax on investment income was repealed earlier.
How South Dakota and Tennessee split the bill
South Dakota: $20,820 paycheck, $4,000 property, $1,222 sales. Tennessee: $20,820 paycheck, $2,080 property, $1,922 sales.
Take-home matches at $79,180 — federal income tax and FICA are the same, and neither state adds wage PIT.
As a share of wages the combined bill is 26.0% in South Dakota vs 24.8% in Tennessee.
Tax total vs cost of living
South Dakota’s COL index is 94.1; Tennessee’s is 88.9 (US average = 100). A lower household tax total can still sit in a more expensive grocery and rent basket.
Among the nine, Tennessee has the lowest COL index (88.9) and Alaska the highest (129).
Use the tax columns to compare levies and the COL column to compare prices. They answer different questions.
What this comparison leaves out
Local city wage taxes are not in play here (none of the nine models a separate city PIT on this vignette). Employer payroll taxes, credits beyond calculator defaults, and Washington’s capital gains excise on certain long-term gains are excluded from the wage household total.
Property uses a statewide effective rate on a fixed $400,000 home — not your county millage or purchase price. Sales tax uses a combined state + average local rate on a fixed $20,000 basket.
The nine-state range at $100,000 is $24,018 (Wyoming) to $28,060 (Texas).
The same pair at other salaries
Home value and spending stay fixed, so the ladder mostly moves with paycheck tax. At $75,000, Tennessee is lower by $1,220. At $150,000, Tennessee is lower by $1,220.
If you itemize, buy a different-priced home, or spend more on taxable goods, reorder the pair in the property and sales hubs rather than treating this ladder as a forecast.
Concepts to know for this comparison
Short definitions so the wage, property, sales, and COL lines add up the way you expect.
Wage PIT is already zero
The interesting gap is property, sales, and (for Washington) modeled employee PFML — not a state wage bracket.
Household total
Add paycheck tax, property on $400,000, and sales on $20,000. That is the ranking metric on the hub.
COL index
A separate price index. It does not change the tax dollars in the scoreboard.
Myths vs facts — South Dakota vs Tennessee
South Dakota must be cheaper because both skip income tax.
Tennessee is lower on this vignette by $1,220. The other state still has no wage PIT.
Take-home is always identical across no-tax states.
It is identical on this pair ($79,180). Other nine-state pairs involving Washington are not.
Who this South Dakota vs Tennessee page helps
Useful if…
- •Choosing between South Dakota and Tennessee after already deciding on a no-wage-PIT state
- •Remote workers comparing Texas vs Florida vs Nevada-style forks
- •Retirees who need property and sales, not a wage bracket
Use a fuller model if…
- •Anyone whose home price is far from the vignette value
- •People with large capital gains considering Washington
- •Moves that still involve a high-tax origin — use the all-50 compare ladder too
Common mistakes reading this pair
- Treating the lower COL state as automatically lower-tax
- Using the $400,000 home as your actual bill
- Ignoring Washington employee PFML when Washington is one side
- Forgetting federal tax still applies in South Dakota and Tennessee
South Dakota vs Tennessee checklist
Before treating the household total as a relocation decision.
- 1Confirm both South Dakota and Tennessee are no-wage-PIT states
- 2Read paycheck, property, and sales — not only take-home
- 3Check COL indexes on the scoreboard
- 4Re-run property tax at your purchase price
- 5Open the reverse pair if you are moving the other direction
South Dakota vs Tennessee no-income-tax FAQs
Neither does. Both are on the nine-state list. The comparison is property, sales, modeled payroll, and cost of living — not a wage PIT gap.
Tennessee is lower by about $1,220 a year on this vignette ($26,042 vs $24,822).
South Dakota: property $4,000 (1.00%), sales $1,222 (6.11%). Tennessee: property $2,080 (0.52%), sales $1,922 (9.61%).
South Dakota is #6 and Tennessee is #3 of 9 on combined household tax (lowest bill = #1).
Yes — on US state tax compare and household tax by state. This hub’s pair form is the nine no-wage-PIT states only.
Compare another pair
Compare two of the nine
Combined wage, property, and sales tax on the $100,000 household vignette.
Related no-income-tax comparisons
Related tools
Estimates for one fixed household, 2026 rules. Statewide average property and sales rates — local wage taxes, city levies, Washington capital gains excise, credits, and itemized deductions are excluded. Not tax advice.