Minnesota vs South Dakota Taxes: Income, Property & Sales

Does Minnesota or South Dakota have lower taxes? We answer that in a variety of ways below:

Minnesota vs South Dakota Income Tax Comparison

	Minnesota	South Dakota
Income Tax Rates & Thresholds	5.35%: $0-$28,080 6.80%: $28,081-$92,230 7.85%: $92,231-$171,220 9.85%: $171,221+	None
Median Income	$90,390	$67,180
Income Tax Paid On Median Household Income	$17,516	$7,547
Income After Tax Based on Median Household Income	$72,874	$59,633

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Minnesota vs South Dakota Property Tax Comparison

	Minnesota	South Dakota
Average Property Tax Rate	0.90%	1.03%
Average House Price By State	$336,279	$296,811
Average Property Tax Owed Per Year	$3,027	$3,057
Income After Income Taxes & Property Taxes Based On Median State Household Income	$69,847	$56,576

Minnesota vs South Dakota Sales Tax Comparison

	Minnesota	South Dakota
Average State Sales Tax	6.88%	4.50%
Average Local Sales Tax Across the State	0.61%	1.90%
Average Combined Sales Tax Rate	7.49%	6.40%
Maximum Amount of Sales Tax Paid Based on Median Household Income	$4,867	$3,403
Maximum Disposable Income Based on Median Household Income	$64,980	$53,173

After Tax Comparison Earning $40,000 Per Year Filing As Single

	Minnesota	South Dakota
Income Tax Owed	$4,490	$3,040
After Tax Income	$35,510	$36,960
Income After Income & Property Tax	$32,483	$33,903
Maximum Disposable Income After Income, Property & Sales Taxes	$30,220	$31,864

After Tax Comparison Earning $60,000 Per Year Filing As Single

	Minnesota	South Dakota
Income Tax Owed	$8,763	$5,968
After Tax Income	$51,237	$54,032
Income After Income & Property Tax	$48,210	$50,975
Maximum Disposable Income After Income, Property & Sales Taxes	$44,851	$47,909

After Tax Comparison Earning $80,000 Per Year Filing As Single

	Minnesota	South Dakota
Income Tax Owed	$14,523	$10,368
After Tax Income	$65,477	$69,632
Income After Income & Property Tax	$62,450	$66,575
Maximum Disposable Income After Income, Property & Sales Taxes	$58,099	$62,570

After Tax Comparison Earning $100,000 Per Year Filing As Single

	Minnesota	South Dakota
Income Tax Owed	$20,283	$14,768
After Tax Income	$79,717	$85,232
Income After Income & Property Tax	$76,690	$82,175
Maximum Disposable Income After Income, Property & Sales Taxes	$71,347	$77,232

After Tax Comparison Earning $100,000 Per Year Filing As Married Filing Jointly

	Minnesota	South Dakota
Income Tax Owed	$12,931	$8,481
After Tax Income	$87,069	$91,519
Income After Income & Property Tax	$84,042	$88,462
Maximum Disposable Income After Income, Property & Sales Taxes	$78,186	$83,141

After Tax Comparison Earning $150,000 Per Year Filing As Married Filing Jointly

	Minnesota	South Dakota
Income Tax Owed	$26,386	$18,536
After Tax Income	$123,614	$131,464
Income After Income & Property Tax	$120,587	$128,407
Maximum Disposable Income After Income, Property & Sales Taxes	$112,185	$120,683

After Tax Comparison Earning $200,000 Per Year Filing As Married Filing Jointly

	Minnesota	South Dakota
Income Tax Owed	$40,903	$29,536
After Tax Income	$159,097	$170,464
Income After Income & Property Tax	$156,070	$167,407
Maximum Disposable Income After Income, Property & Sales Taxes	$145,195	$157,337

After Tax Comparison Earning $250,000 Per Year Filing As Married Filing Jointly

	Minnesota	South Dakota
Income Tax Owed	$56,747	$41,455
After Tax Income	$193,253	$208,545
Income After Income & Property Tax	$190,226	$205,488
Maximum Disposable Income After Income, Property & Sales Taxes	$176,971	$193,128

FAQ

Does Minnesota or South Dakota have lower income taxes?

Minnesota’s income tax falls into the following range:

• 5.35%: $0-$28,080
• 6.80%: $28,081-$92,230
• 7.85%: $92,231-$171,220
• 9.85%: $171,221+

Whereas South Dakota’s income tax is the following None

Does Minnesota or South Dakota have lower property taxes?

Minnesota has an average property tax rate of 0.90%

In comparison, South Dakota has an average property tax rate of 1.03%

Does Minnesota or South Dakota have lower sales taxes?

Minnesota has a state sales tax rate of 6.88% and an average local rate of 0.61% for a combined total rate of 7.49%.

In contrast, South Dakota has a state sales tax rate of 4.50% and an average local rate of 1.90% for a combined total rate of 6.40%.

Do you get to keep more money in Minnesota or South Dakota?

Based on median household income after income, property and sales taxes Minnesota gives you a maximum amount of disposable income of $64,980

In comparison, South Dakota gives you $53,173.

More Comparisons:

Minnesota vs North Dakota
Minnesota vs Alaska
Minnesota vs Washington DC
Minnesota vs Vermont
Minnesota vs Wyoming

Sources:

https://en.wikipedia.org/wiki/State_income_tax#Rates_by_jurisdiction

https://www.bankrate.com/real-estate/property-tax-by-state/#by-state

https://fred.stlouisfed.org/release/tables?eid=259515&rid=249

https://www.fool.com/the-ascent/research/average-house-price-state/

https://taxfoundation.org/data/all/state/2022-sales-taxes/

https://www.forbes.com/advisor/income-tax-calculator/