Iowa vs Montana Take-Home Pay Showdown
VSDetailed comparison of tax rates, cost of living, and quality of life
📌 The 8.53% versus 6.75% comparison nets approximately $1,068 annually for $60,000 professionals. Montana stays relevant through wide open spaces. Migration patterns reflect families choosing Montana, privacy seekers selecting Iowa based on total value rather than taxes alone.
The spread between Iowa (8.53%) and Montana (6.75%) creates noticeable paycheck differences. At $60,000, you're facing roughly $1,068 in annual tax variance. How much that matters depends on your broader financial picture.
🔑 Key Differences
- **State income tax**: Iowa at 8.53% vs Montana at 6.75%
- **Annual savings** (on $60,000): Montana saves you ~$1,068
- **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 | Montana |
|---|---|---|
| State Income Tax | 0.33% - 8.53% | 1% - 6.75% |
| 💰 On $40,000 Salary |
State Tax: $1,772
Take Home: $38,228
|
State Tax: $1,550
Take Home: $38,450
+$222
|
| 💰 On $60,000 Salary |
State Tax: $2,658
Take Home: $57,342
|
State Tax: $2,325
Take Home: $57,675
+$333
|
| 💰 On $100,000 Salary |
State Tax: $4,430
Take Home: $95,570
|
State Tax: $3,875
Take Home: $96,125
+$555
|
| 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. | Montana costs split dramatically by location. Bozeman has seen explosive growth - median home prices now often exceed $600,000-700,000, comparable to expensive metros. Missoula and areas near Yellowstone also command premium pricing. Billings and Great Falls offer substantially better value with homes often available for $250,000-350,000. Rural Montana delivers genuine affordability. Property taxes stay relatively low. No sales tax provides meaningful savings. Heating costs run high during severe winters. The transformation means desirable Montana locations now require six-figure incomes for comfortable living, while traditional Montana towns retain affordability. |
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
Montana
✓ Advantages
- No sales tax
- Beautiful natural scenery
- Outdoor recreation
- Lower population density
⚠ Considerations
- Lower average salaries
- Limited job market
- Very cold winters
- Remote locations
Bottom Line
Looking strictly at taxes, Montana provides $1,068 yearly advantage for $60,000 professionals. Iowa balances this through wide open spaces. 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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