Seeing Mount Rushmore might already be on your bucket list, but retiring in South Dakota? That probably hasn’t crossed your mind yet — though maybe it should. South Dakota ranks favorably in terms of cost of living, per the MERIC Index, and there are plenty of other reasons why you might want to give it a chance.

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A few reasons South Dakota might be appealing

Let’s cut to the chase and talk about taxes. They’re a big deal for most retirees.

South Dakota is one of the few states that gives you a break on state income taxes. The state doesn’t tax income from sources like Social Security, individual retirement accounts (IRAs), or pensions. There’s also no inheritance or estate tax, so you can pass on your money without the state taking a chunk.

The cost of living? It’s about 6% lower than the national average, according to the World Population Review. Housing is a solid buy, too — the typical home price was recently $308,851, about 85% of the national average. All in all, South Dakota is easier on the wallet than many other states.

Several cities and towns in South Dakota could be ideal for retirees, so it’s worth exploring them before you settle down. Sioux Falls, the state’s largest city, offers plenty of amenities. However, places like Rapid City, Watertown, and Spearfish might be more your speed, depending on the retirement lifestyle you’re after.

It’s not all sunshine, though

If you’re not willing to brave the cold, South Dakota might not be your cup of tea. The winters can be pretty harsh, but if you can hang in there, you’ll be rewarded with scenic views and outdoor activities when the weather is at its best.

Also, keep in mind that South Dakota is largely rural, so amenities and services may be more limited in some areas. Ultimately, you should factor in healthcare and lifestyle preferences to determine what’s best for you.

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