| Index | Watertown | South Dakota | National |
| Cost of living | 96 | 92 | 100 |
| Groceries | 98 | 99 | 100 |
| Health care | 95 | 97 | 100 |
| Housing | 93 | 77 | 100 |
| Transportation | 93 | 96 | 100 |
| Utilities | 104 | 103 | 100 |
| Lifestyle & Entertainment | 93 | 94 | 100 |
| Household Items | 95 | 96 | 100 |
| Education & Childcare | 98 | 98 | 100 |
The cost of living in Watertown affects the quality of life one can afford in this new location. It allows people to assess whether they can maintain their preferred lifestyle, including housing, leisure activities and dining options. Your total monthly expenditures can varry depending on the area, as well as many other factors. The cost of living in Watertown is 96, which is 4% lower than the national average. Knowledge of the cost of living can help individuals make informed decisions about retirement savings, investments, and financial goals.
The cost of living in Watertown is about average when compared to all other cities across the nation. You can expect that everyday items like food, household expenses and utility bills will be no more expensive than any other average city. Residents can anticipate living expenses that remain in line with the national average, ensuring a manageable financial burden, making it an attractive choice for those seeking affordability without the constraints of higher everyday expenditures.
Is Watertown an affordable place to live? It's a good question and one that you might want to ask when considering any new city, as affordability can play a huge role in the decision making process. The cost of living index (which we covered above), as well as housing costs and income levels play a vital role in determining the affordability of an area. The median home price in Watertown is 0.5% lower than the national average, while the average monthly rent prices are 20.8% lower than average. The affordability of any location can also be influenced by median income levels. Watertown has a median household income of $78,834, which is 3.1% lower than the national average.
Groceries: Grocery costs have continued to increase significantly over the last 2-3 years. In some markets the cost of food has gone up by more than 20% in that period. While other markets have managed to see only a moderate uptick. These food costs can have a major impact on the cost of living in any area. In Watertown, the groceries index is 2.1% lower than the national average.
Healthcare: The costs associated with healthcare and insurance premiums can exhibit notable disparities based on the city or state of residence. Access to healthcare facilities, out-of-pocket expenses for medical appointments, dental care charges, prescription medication costs and specialized medical care expenses all contribute to variations in the cost of living. In Watertown, healthcare costs are 4.8% lower than the national average.
Taxes: Areas with higher taxes, including sales taxes and income taxes, can contribute to a higher cost of living. Paying more tax for everyday household expenses like clothing and food will result in higher costs, as will paying a higher rate of income tax. The general sales tax rate in Watertown starts at 4.5% and the income tax rates start at 0%.
The cost of living data for Watertown shown above is based on a U.S. average baseline score of 100, making it easier to compare how far your dollar may go from one city to another. Housing uses U.S. Census home price and rental data, while all remaining values are AI-assisted estimates informed by regional pricing, climate, transportation dynamics, and local economic factors. These scores are best used for directional comparisons between cities.
| Cost of living index | |
| Groceries index | |
| Health care index | |
| Housing index | |
| Transportation index | |
| Utilities index | |
| Lifestyle index | |
| Household index | |
| Educare index |
| Median Income | Per Year | Per Month | Max Budget (28% DTI) | Max Budget (36% DTI) |
| Owners | $103,530 | $8,628 | $2,416 | $3,106 |
| Renters | $52,913 | $4,409 | $1,235 | $1,588 |
| State | General Sales Tax | With Max Surtax |
| South Dakota | 4.5% | 6% |
| State | Income Tax (Low) | Income Tax (High) |
| South Dakota | 0% | 0% |
| City | Population | Cost of Living Index | National Avg. |
| Waverly, SD | 53 | 96 | 3.5% |
| South Shore, SD | 266 | 80 | 19.8% |
| Goodwin, SD | 104 | 82 | 17.6% |
| Florence, SD | 378 | 86 | 14.3% |
| Hazel, SD | 149 | 87 | 12.6% |
| Watertown, SD | 22,909 | 96 | 4.5% |
| City | Population | Cost of Living Index | National Avg. |
| Villa Park, IL | 22,904 | 110 | 10.4% |
| Clinton, UT | 22,893 | 114 | 14.4% |
| Uxbridge, ON | 22,892 | n/a | |
| Maple Heights, OH | 22,891 | 85 | 15.2% |
| Fairhope, AL | 22,887 | 118 | 17.6% |
| Watertown, SD | 22,909 | 96 | 4.5% |
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