Compare Iowa vs Mississippi Paychecks
VSDetailed comparison of tax rates, cost of living, and quality of life
📌 The 8.53% versus 5.00% comparison nets approximately $2,648 annually for $75,000 professionals. Mississippi stays relevant through lowest cost of living. Migration patterns reflect families choosing Mississippi, retirees selecting Iowa based on total value rather than taxes alone.
Iowa charges 8.53% while Mississippi sits at 5.00%. For $75,000 earners, that difference translates to approximately $2,648 per year. It's a meaningful gap, though hardly the only consideration in a state-to-state comparison.
🔑 Key Differences
- **State income tax**: Iowa at 8.53% vs Mississippi at 5.00%
- **Annual savings** (on $75,000): Mississippi saves you ~$2,648
- **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 | Iowa | Mississippi |
|---|---|---|
| State Income Tax | 0.33% - 8.53% | 0% - 5% |
| 💰 On $40,000 Salary |
State Tax: $1,772
Take Home: $38,228
|
State Tax: $1,000
Take Home: $39,000
+$772
|
| 💰 On $60,000 Salary |
State Tax: $2,658
Take Home: $57,342
|
State Tax: $1,500
Take Home: $58,500
+$1,158
|
| 💰 On $100,000 Salary |
State Tax: $4,430
Take Home: $95,570
|
State Tax: $2,500
Take Home: $97,500
+$1,930
|
| Cost of Living | 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. | Mississippi consistently ranks as America's most affordable state. Housing costs run dramatically below national levels - quality homes in Jackson, Gulfport, or other cities often sell for $150,000-200,000. Monthly rent for decent apartments typically runs $600-900. Property taxes stay very low. Mississippi charges no sales tax on groceries, helping families significantly. Utilities, services, and general expenses all cost substantially less than national averages. The extreme affordability means even modest salaries - levels that would struggle elsewhere - support comfortable middle-class lifestyles with home ownership, reasonable transportation, and financial breathing room. |
Pros & Cons
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
Mississippi
✓ Advantages
- Lowest cost of living in US
- Very affordable housing
- No tax on groceries
- Mild winters
⚠ Considerations
- Lower average salaries
- Limited metro areas
- Hot humid summers
- Economic challenges in some areas
Bottom Line
Mississippi's 5.00% versus Iowa's 8.53% translates to roughly $2,648 advantage at $75,000. Iowa stays relevant by offering lowest cost of living. The decision often hinges on whether {factor} or direct tax savings carries more weight in your situation.📢 Share This Comparison
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