Iowa vs Nebraska: Which State Keeps More Money in Your Pocket?
VSDetailed comparison of tax rates, cost of living, and quality of life
📌 The 8.53% versus 6.84% comparison nets approximately $1,268 annually for $75,000 professionals. Nebraska stays relevant through stable economy. Migration patterns reflect families choosing Nebraska, farmers selecting Iowa based on total value rather than taxes alone.
Iowa charges 8.53% while Nebraska sits at 6.84%. For $75,000 earners, that difference translates to approximately $1,268 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 Nebraska at 6.84%
- **Annual savings** (on $75,000): Nebraska saves you ~$1,268
- **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 | Nebraska |
|---|---|---|
| State Income Tax | 0.33% - 8.53% | 2.46% - 6.84% |
| 💰 On $40,000 Salary |
State Tax: $1,772
Take Home: $38,228
+$88
|
State Tax: $1,860
Take Home: $38,140
|
| 💰 On $60,000 Salary |
State Tax: $2,658
Take Home: $57,342
+$132
|
State Tax: $2,790
Take Home: $57,210
|
| 💰 On $100,000 Salary |
State Tax: $4,430
Take Home: $95,570
+$220
|
State Tax: $4,650
Take Home: $95,350
|
| 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. | Nebraska consistently ranks among America's most affordable states. Omaha and Lincoln offer genuine metropolitan amenities while maintaining housing costs 40-50% below expensive coastal markets. Quality homes in good neighborhoods typically sell for $200,000-300,000. Smaller Nebraska cities provide even better value. Property taxes vary but generally stay moderate. Groceries, utilities, and services all cost substantially less than national averages. The dramatic affordability means even moderate incomes support comfortable middle-class lifestyles. |
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
Nebraska
✓ Advantages
- Low cost of living
- Affordable housing
- Strong agriculture and insurance sectors
- Low unemployment
⚠ Considerations
- Cold winters
- Limited metro areas
- Tornado risk
- Population decline in rural areas
Bottom Line
The numbers favor Nebraska by approximately $1,268 yearly for $75,000 earners. That said, Iowa continues attracting residents who value stable economy. Whether that tax difference outweighs Iowa's edge in {factor} comes down to your personal situation and priorities.📢 Share This Comparison
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