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Trucking Costs in South Dakota

Operating cost analysis for South Dakota — no income tax and among the lowest operating costs nationally.

Total Cost Per Mile Analysis

South Dakota's diesel tax is 28.0 cents per gallon plus 24.4 federal for 52.4 cents total. Diesel prices average $5.18/gallon (EIA, Midwest region, week of August 10, 2026). An owner-operator with a paid-off truck can expect $1.35-$1.70 per mile — among the lowest nationally. With payments: $1.60-$2.00. No state income tax saves $3,000-$12,000 annually. Insurance runs $8,000-$14,000. Shop labor averages $75-$110/hr. The flat terrain allows fuel-efficient driving. Dry van rates average $2.10/mi, flatbed $2.60/mi. Agricultural harvest freight pays premiums. The very low cost of living means trucking income stretches further. Owner-operators grossing $165,000-$205,000 can net $50,000-$70,000 — tax-free at the state level.

FAQs — South Dakota Trucking Costs

South Dakota is among the cheapest. Total cost $1.35-$1.70/mi with paid-off truck, no income tax, insurance as low as $8,000-$14,000/year, and the nation's lowest cost of living. Only Mississippi and a few others compete on total operating cost. The no-income-tax advantage is the differentiator.