Arkansas vs Iowa: Tax Impact on Your Salary
VSDetailed comparison of tax rates, cost of living, and quality of life
📌 At the $75,000 level, Arkansas's 4.90% versus Iowa's 8.53% produces approximately $2,723 variance yearly. Iowa draws residents through strong communities. budget-conscious populations cluster in Arkansas for tax reasons; educators concentrate in Iowa for strong communities.
Looking at the numbers, Arkansas's 4.90% rate versus Iowa's 8.53% means about $2,723 difference annually on $75,000. That's the kind of gap that gets people's attention, even if other factors ultimately drive the decision.
🔑 Key Differences
- **State income tax**: Arkansas at 4.90% vs Iowa at 8.53%
- **Annual savings** (on $75,000): Arkansas saves you ~$2,723
- **Tax system**: Both use progressive brackets
- **Deductions**: Standard federal deductions apply, state variations exist
- **Local taxes**: Check your specific county/city as rates vary within states
Tax Comparison
| Tax Type | Arkansas | Iowa |
|---|---|---|
| State Income Tax | 2% - 4.9% | 0.33% - 8.53% |
| 💰 On $40,000 Salary |
State Tax: $1,380
Take Home: $38,620
+$392
|
State Tax: $1,772
Take Home: $38,228
|
| 💰 On $60,000 Salary |
State Tax: $2,070
Take Home: $57,930
+$588
|
State Tax: $2,658
Take Home: $57,342
|
| 💰 On $100,000 Salary |
State Tax: $3,450
Take Home: $96,550
+$980
|
State Tax: $4,430
Take Home: $95,570
|
| Cost of Living | Arkansas delivers exceptional value. Little Rock, Fayetteville, and Fort Smith offer genuine urban amenities while maintaining housing costs dramatically below national averages. You'll find quality homes for $180,000-250,000 in good neighborhoods. Monthly rent for nice apartments typically runs $700-1,000. Northwest Arkansas costs slightly more due to Walmart's influence but remains very affordable by national standards. Property taxes stay low statewide. Groceries, utilities, and services all cost less than most states. Even moderate incomes provide comfortable lifestyles - a stark contrast to expensive metros where similar salaries barely cover basic needs. | Iowa consistently ranks among America's most affordable states. Des Moines and Cedar Rapids offer genuine metropolitan amenities - professional sports, cultural institutions, quality restaurants - while maintaining housing costs 50-60% below expensive coastal markets. Quality homes in good neighborhoods typically sell for $200,000-300,000. Iowa City combines college town atmosphere with reasonable prices. Smaller cities throughout Iowa provide even greater value. Property taxes vary by locality but generally stay moderate. Groceries, utilities, and services all cost less than national averages. The affordability advantage means even moderate incomes support comfortable, middle-class lifestyles. |
Pros & Cons
Arkansas
✓ Advantages
- Very low cost of living
- Affordable housing
- Natural beauty
- Growing northwest region
⚠ Considerations
- Lower average salaries
- Limited metro areas
- Hot humid summers
- Sales tax high in some areas
Iowa
✓ Advantages
- Low cost of living statewide
- Extremely affordable housing
- Strong agriculture and insurance sectors
- Good education systems
- Friendly communities
⚠ Considerations
- Cold winters
- Limited metro areas
- Population decline in rural areas
- Lower average salaries
- Limited public transportation
Bottom Line
Looking strictly at taxes, Arkansas provides $2,723 yearly advantage for $75,000 professionals. Iowa balances this through strong communities. Your best choice depends on weighing that direct savings against what Iowa offers in terms of {factor} and overall quality of life.📢 Share This Comparison
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