Alaska vs South Dakota
South Dakota
Property Tax Comparison: Alaska vs. South Dakota
Introduction
Both Alaska and South Dakota are often cited for relatively low overall tax burdens. When the focus is narrowed to property taxes, the two states show modest differences. According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), South Dakota has a slightly lower effective property tax rate than Alaska. The following sections present the key metrics side‑by‑side, identify which state has the lower rate, and note which groups of residents might find the information most relevant.
Side‑by‑Side Comparison
| Metric | Alaska | South Dakota |
|---|---|---|
| Effective property tax rate | 1.14 % | 1.09 % |
| Median home value | $333,300 | $236,800 |
| Median annual property tax | $3,785 | $2,590 |
| Tax on a $250,000 home | $2,839 | $2,735 |
| Tax on a $500,000 home | $5,678 | $5,469 |
| Median household income | $89,336 | $72,421 |
| Reference link | Alaska property tax | South Dakota property tax |
All figures are drawn from the U.S. Census Bureau's 2023 ACS (5‑year) estimates.
Which State Wins?
South Dakota records the lower effective property tax rate at 1.09 % compared with Alaska’s 1.14 %.
- Rate difference: 0.04 % (approximately a 3.68 % relative difference).
- Annual tax difference on a $250k home: $104 less in South Dakota.
- Annual tax difference on a $500k home: $209 less in South Dakota.
The lower rate in South Dakota means that, for identical home values, property‑tax liability is modestly lower than in Alaska. The difference arises from variations in local assessment practices and the relative weight of property taxes in each state’s overall tax structure.
Who Is This Comparison Most Relevant For?
| Audience | Relevance of the Comparison |
|---|---|
| Current or prospective homeowners | Understanding the expected annual property‑tax cost helps in budgeting and comparing total housing expenses across states. |
| Retirees | Many retirees consider property taxes when evaluating cost‑of‑living, especially if they own a home outright and rely on fixed incomes. |
| Real‑estate investors | Effective tax rates affect cash‑flow projections for rental properties and long‑term investment returns. |
| Relocating employees | Companies that relocate staff often provide cost‑of‑living analyses; property tax is a component of that analysis. |
| Policy analysts | The data illustrate how state and local tax policies translate into measurable homeowner expenses. |
The comparison does not address other tax categories (e.g., income, sales, or fuel taxes) or non‑tax factors such as climate, healthcare, or employment opportunities. Users should consider the full fiscal environment when making relocation or investment decisions.
Sources
- U.S. Census Bureau, 2023 American Community Survey (5‑year estimates).
Data retrieved for effective property tax rates, median home values, median annual property taxes, and median household incomes.
All calculations (e.g., tax differences) are based directly on the figures provided by the ACS.
Explore More Comparisons
Discover how property taxes compare across all states in our comprehensive comparison guide.
Data Source
All figures are drawn from the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates). This comprehensive dataset provides reliable, standardized property tax information across all states.