Retiring in Sioux Falls

Retiring in Sioux Falls offers real, current strengths -- no state income tax, a genuinely rare dual-headquarters healthcare anchor, and a genuinely low overall cost of living -- alongside a real, disclosed property tax rate above the national comparison figure and real hail/tornado exposure this record does not paper over.

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No State Income Tax -- A Genuine Advantage for Retirement Income

South Dakota levies no state income tax at all, meaning pension income, Social Security, and retirement account withdrawals all go untaxed at the state level -- a real, current, genuine advantage for retirees on a fixed income.

A Real, Major Healthcare Anchor for Retirees

As detailed on the healthcare topic page, Sanford Health and Avera Health together anchor a genuinely rare dual-headquarters healthcare system directly in Sioux Falls -- a genuine strength for retirees prioritizing healthcare access.

A Genuinely Low Overall Cost of Living

As detailed on the cost-of-living topic page, Sioux Falls' cost-of-living index (~85.0) ran approximately 12% below the national average, with housing specifically cited approximately 36.9% cheaper than the U.S. average -- a real, meaningful advantage for retirees on a fixed income.

A Real Property Tax Rate Above the National Comparison Figure

As detailed on the property-taxes topic page, Sioux Falls' own cited effective property tax rate (~1.18%) runs modestly above this project's ~1.02% national comparison figure -- retirees who own their home should weigh this honestly against the state's lack of an income tax.

Key takeaways

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Last reviewed: 2026-08-28. Independent research; not financial, tax, or legal advice -- confirm current figures with a local professional before making a decision.