Tennessee vs South Dakota Taxes: Income, Property & Sales

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

Tennessee vs South Dakota Income Tax Comparison

	Tennessee	South Dakota
Income Tax Rates & Thresholds	None	None
Median Income	$65,380	$67,180
Income Tax Paid On Median Household Income	$7,151	$7,547
Income After Tax Based on Median Household Income	$58,229	$59,633

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Tennessee vs South Dakota Property Tax Comparison

	Tennessee	South Dakota
Average Property Tax Rate	0.42%	1.03%
Average House Price By State	$310,782	$296,811
Average Property Tax Owed Per Year	$1,305	$3,057
Income After Income Taxes & Property Taxes Based On Median State Household Income	$56,924	$56,576

Tennessee vs South Dakota Sales Tax Comparison

	Tennessee	South Dakota
Average State Sales Tax	7.00%	4.50%
Average Local Sales Tax Across the State	2.55%	1.90%
Average Combined Sales Tax Rate	9.55%	6.40%
Maximum Amount of Sales Tax Paid Based on Median Household Income	$4,962	$3,403
Maximum Disposable Income Based on Median Household Income	$51,961	$53,173

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

	Tennessee	South Dakota
Income Tax Owed	$3,040	$3,040
After Tax Income	$36,960	$36,960
Income After Income & Property Tax	$35,655	$33,903
Maximum Disposable Income After Income, Property & Sales Taxes	$32,547	$31,864

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

	Tennessee	South Dakota
Income Tax Owed	$5,968	$5,968
After Tax Income	$54,032	$54,032
Income After Income & Property Tax	$52,727	$50,975
Maximum Disposable Income After Income, Property & Sales Taxes	$48,130	$47,909

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

	Tennessee	South Dakota
Income Tax Owed	$10,368	$10,368
After Tax Income	$69,632	$69,632
Income After Income & Property Tax	$68,327	$66,575
Maximum Disposable Income After Income, Property & Sales Taxes	$62,370	$62,570

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

	Tennessee	South Dakota
Income Tax Owed	$14,768	$14,768
After Tax Income	$85,232	$85,232
Income After Income & Property Tax	$83,927	$82,175
Maximum Disposable Income After Income, Property & Sales Taxes	$76,610	$77,232

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

	Tennessee	South Dakota
Income Tax Owed	$8,481	$8,481
After Tax Income	$91,519	$91,519
Income After Income & Property Tax	$90,214	$88,462
Maximum Disposable Income After Income, Property & Sales Taxes	$82,349	$83,141

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

	Tennessee	South Dakota
Income Tax Owed	$18,536	$18,536
After Tax Income	$131,464	$131,464
Income After Income & Property Tax	$130,159	$128,407
Maximum Disposable Income After Income, Property & Sales Taxes	$118,812	$120,683

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

	Tennessee	South Dakota
Income Tax Owed	$29,536	$29,536
After Tax Income	$170,464	$170,464
Income After Income & Property Tax	$169,159	$167,407
Maximum Disposable Income After Income, Property & Sales Taxes	$154,412	$157,337

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

	Tennessee	South Dakota
Income Tax Owed	$41,455	$41,455
After Tax Income	$208,545	$208,545
Income After Income & Property Tax	$207,240	$205,488
Maximum Disposable Income After Income, Property & Sales Taxes	$189,174	$193,128

FAQ

Does Tennessee or South Dakota have lower income taxes?

Tennessee’s income tax falls into the following range: None

Whereas South Dakota’s income tax is the following None

Does Tennessee or South Dakota have lower property taxes?

Tennessee has an average property tax rate of 0.42%

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

Does Tennessee or South Dakota have lower sales taxes?

Tennessee has a state sales tax rate of 7.00% and an average local rate of 2.55% for a combined total rate of 9.55%.

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 Tennessee or South Dakota?

Based on median household income after income, property and sales taxes Tennessee gives you a maximum amount of disposable income of $51,961

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

More Comparisons:

Tennessee vs North Dakota
Tennessee vs Alaska
Tennessee vs Washington DC
Tennessee vs Vermont
Tennessee 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/