A few months ago we posted on the Regional Price Parities release by the Bureau of Economic Analysis, an index essentially measuring the cost of living by state. South Dakota ranked 5th with one of the lowest costs of living in the nation. This week the Tax Foundation released an interpretation of the BEA data looking at how far $100 will go by state.
So how does South Dakota fare? We have the 5th highest relative value with $100 valued at $113.38. Or we are about 13.4% richer than our nominal incomes suggest; evidence that our dollars stretch a little further in South Dakota thanks to our low cost and low tax environment.
Mississippi had the highest relative value at $115.74 and Hawaii had the lowest relative value at $85.32.
The leading five states are:
- Mississippi: $115.74
- Arkansas: $114.16
- Missouri: $113.51
- Alabama: $113.51
- South Dakota: $113.38