Cost of Living: Montgomery, AL vs Sioux Falls, SD (2026)

Montgomery

Alabama
64
VS

Sioux Falls

South Dakota
78

Montgomery is 14% cheaper than Sioux Falls.

$1,059/mo ↑ 7%
Median Rent
$993/mo ↓ 6%
$55,687/yr ↓ 25%
Median Income
$74,714/yr ↑ 34%
$148,500 ↓ 45%
Home Value
$271,400 ↑ 83%
$1,023/mo ↓ 9%
Owner Costs
$1,122/mo ↑ 10%
198,440
Population
197,642

Tax Comparison

5.0%
Income Tax
0%
4.0%
Sales Tax
4.2%
0.41%
Property Tax
1.28%

Affordability

22.8%
rent-to-income
Affordability
15.9%
rent-to-income

Detailed Comparison

When comparing Montgomery, AL and Sioux Falls, SD, the overall cost of living indices are 64 and 78 respectively (national median = 100). Rent is $66/month cheaper in Sioux Falls, saving renters about $792/year.

Median household income is $19,027/year higher in Sioux Falls. Home values also differ significantly — the median in Montgomery is $148,500 compared to $271,400 in Sioux Falls.

South Dakota has no state income tax, giving Sioux Falls residents a significant tax advantage over Alabama's 5.0% rate.

Frequently Asked Questions

Montgomery vs Sioux Falls — common questions

Is Montgomery or Sioux Falls cheaper to live in?
Based on our cost index, Montgomery is cheaper to live in with an index of 64 compared to 78 (US average = 100).
What is the rent difference between Montgomery and Sioux Falls?
Median rent in Montgomery is $1,059/month and in Sioux Falls it's $993/month — a difference of $66/month.
Which city has higher income, Montgomery or Sioux Falls?
Median household income is $55,687 in Montgomery and $74,714 in Sioux Falls. Median household income is $19,027/year higher in Sioux Falls.
How do taxes compare between Alabama and South Dakota?
Alabama has 5.0% income tax, 4.0% sales tax, and 0.41% property tax. South Dakota has 0% income tax, 4.2% sales tax, and 1.28% property tax.
Should I move to Montgomery or Sioux Falls?
It depends on your priorities. Montgomery has a cost index of 64 with median rent of $1,059/mo, while Sioux Falls has a cost index of 78 with rent of $993/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
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