Side-by-side tax comparison between Rhode Island (5.99% top rate) and South Dakota (no income tax).
| Salary | Rhode Island | South Dakota | Difference | Winner |
|---|---|---|---|---|
| $50K | $40,051 | $42,298 | +$2,246 | South Dakota |
| $75K | $57,933 | $61,303 | +$3,369 | South Dakota |
| $100K | $74,398 | $78,890 | +$4,493 | South Dakota |
| $150K | $106,707 | $113,446 | +$6,739 | South Dakota |
| $200K | $140,118 | $149,103 | +$8,985 | 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 Rhode Island's 5.99% top rate. At $100K, the difference is $4,493/year — that’s $374/month.
However, cost of living matters. Rhode Island has a cost index of 105 while South Dakota is at 92. After adjusting for cost of living, the gap widens significantly.