Cost of Living in Aberdeen
Aberdeen's cost-of-living picture is genuinely favorable and this record discloses it precisely: a low overall cost index and no state income tax sit alongside a real, honestly disclosed elevated property tax RATE that partially offsets the housing-cost savings.
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Learn moreA Genuinely Below-Average Overall Cost-of-Living Index
A cost-of-living aggregator cited Aberdeen running approximately 6% below the U.S. national average and approximately 24% below South Dakota's own state average, with an index of approximately 98 (where 100 represents the national average) -- driven primarily by housing costs cited as running approximately 38.2% below the comparison figure used by that source.
Housing and Rent Run Genuinely, Substantially Below the National Median
As detailed on the housing-market and renting topic pages, Redfin's and Zillow's cited Aberdeen figures (~$206,000-$246,060) run roughly 40-50% below the ~$408,776 national median comparison figure this project uses consistently. RentCafe's cited average rent across all apartment types ran approximately $1,073/month as of January 2026, up ~4.45% year-over-year.
South Dakota's Real, Genuine Lack of Any State Income Tax
As detailed on the taxes topic page, South Dakota levies no individual income tax and no corporate income tax whatsoever -- a real, substantial, genuine cost-of-living advantage for Aberdeen residents this record discloses directly.
Property Tax Runs Genuinely ABOVE the National Comparison Figure -- on a RATE Basis
As detailed on the property-taxes topic page, Aberdeen's cited effective property tax rate (~1.55%) runs above both the ~1.02% national comparison figure and South Dakota's own cited ~1.07-1.09% state median -- though the resulting dollar bill is plausibly still modest given Aberdeen's low home values, a real, disclosed, counterintuitive combination this record did not resolve to a precise dollar figure this pass.
A Real, Comparatively Modest Combined Sales Tax
South Dakota's state sales tax rate (approximately 4.2%) is real, current, and comparatively low nationally, though Aberdeen's own municipal add-on (approximately 2.00%) brings the combined Aberdeen rate to approximately 6.2%, a more average-range figure -- this record discloses both the low state rate and the more average combined city rate directly.
Key takeaways
- A cost-of-living aggregator cited Aberdeen running approximately 6% below the U.S. national average, driven primarily by housing costs (~38.2% below the comparison figure).
- Aberdeen's cited home-price and rent figures run well below national comparison figures -- a real, honestly disclosed cost advantage, consistent with other affordable markets in this dataset.
- South Dakota levies no state individual or corporate income tax whatsoever -- a real, substantial cost advantage.
- Aberdeen's effective property tax RATE runs above the national and South Dakota state comparison figures, even though the resulting dollar bill is plausibly modest given low home values.
- Aberdeen's combined municipal sales tax rate (~6.2%) runs more average-range than South Dakota's comparatively low state-only rate (4.2%).
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