Side-by-side tax comparison between Arizona (2.5% top rate) and South Dakota (no income tax).
| Salary | Arizona | South Dakota | Difference | Winner |
|---|---|---|---|---|
| $50K | $41,360 | $42,298 | +$938 | South Dakota |
| $75K | $59,896 | $61,303 | +$1,406 | South Dakota |
| $100K | $77,015 | $78,890 | +$1,875 | South Dakota |
| $150K | $110,634 | $113,446 | +$2,813 | South Dakota |
| $200K | $145,353 | $149,103 | +$3,750 | South Dakota |
South Dakota offers higher take-home pay at every salary level. With no state income tax, South Dakota gives you a significant advantage over Arizona's 2.5% top rate. At $100K, the difference is $1,875/year — that’s $156/month.
However, cost of living matters. Arizona has a cost index of 97 while South Dakota is at 92. With similar costs of living, the tax difference is the main factor.