Side-by-side tax comparison between Iowa (5.7% top rate) and South Dakota (no income tax).
| Salary | Iowa | South Dakota | Difference | Winner |
|---|---|---|---|---|
| $50K | $40,160 | $42,298 | +$2,138 | South Dakota |
| $75K | $58,096 | $61,303 | +$3,206 | South Dakota |
| $100K | $74,615 | $78,890 | +$4,275 | South Dakota |
| $150K | $107,034 | $113,446 | +$6,413 | South Dakota |
| $200K | $140,553 | $149,103 | +$8,550 | 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 Iowa's 5.7% top rate. At $100K, the difference is $4,275/year — that’s $356/month.
However, cost of living matters. Iowa has a cost index of 89 while South Dakota is at 92. With similar costs of living, the tax difference is the main factor.