Iowa vs New Hampshire: Which State Keeps More Money in Your Pocket?
VSDetailed comparison of tax rates, cost of living, and quality of life
📌 The effective difference between no income tax and 8.53% amounts to roughly $8,530 yearly on $100,000. Iowa compensates with no income tax. While New Hampshire wins on pure numbers, Iowa attracts those valuing climate over tax savings.
The tax picture between Iowa and New Hampshire breaks down like this: 8.53% versus no income tax. For someone making $100,000, we're talking about $8,530 in annual difference. That's significant, but it's worth looking at what else each state brings to the table.
🔑 Key Differences
- **State income tax**: Iowa at 8.53% vs New Hampshire at no income tax
- **Annual savings** (on $100,000): New Hampshire saves you ~$8,530
- **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 | New Hampshire |
|---|---|---|
| State Income Tax | 0.33% - 8.53% | No Income Tax Winner |
| 💰 On $40,000 Salary |
State Tax: $1,772
Take Home: $38,228
|
State Tax: $0
Take Home: $40,000
+$1,772
|
| 💰 On $60,000 Salary |
State Tax: $2,658
Take Home: $57,342
|
State Tax: $0
Take Home: $60,000
+$2,658
|
| 💰 On $100,000 Salary |
State Tax: $4,430
Take Home: $95,570
|
State Tax: $0
Take Home: $100,000
+$4,430
|
| 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. | New Hampshire costs run high despite tax advantages. Property taxes rank among America's highest - often exceeding $6,000-8,000 annually even for modest homes, funding schools and services without income tax revenue. Housing prices substantial, particularly southeastern areas near Boston and around Portsmouth. Manchester and Nashua offer slightly better value. Northern and western regions provide affordability but limited employment. The tax advantages benefit higher earners significantly, though property taxes and housing costs still require substantial incomes for comfortable living. |
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
New Hampshire
✓ Advantages
- No state income tax on wages
- No sales tax
- High quality of life
- Good schools
⚠ Considerations
- High property taxes
- High cost of living
- Cold winters
- Limited public transportation
Bottom Line
The numbers favor New Hampshire by approximately $8,530 yearly for $100,000 earners. That said, Iowa continues attracting residents who value no income tax. 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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