UPDATE: We can now override the minimum padding of prefixIcon AND suffixIcon with prefixIconConstraints.
We can use prefixIcon instead of prefixText. Since prefixIcon accepts any widget, we can use prefixIcon: Text("$").
Here is an example:
InputDecoration(
isDense: true,
prefixIcon:Text("\$"),
prefixIconConstraints: BoxConstraints(minWidth: 0, minHeight: 0),
),