Iowa vs North Dakota: Paycheck Calculator Comparison
VSDetailed comparison of tax rates, cost of living, and quality of life
📌 At $75,000, the difference between Iowa's 8.53% and North Dakota's 2.90% comes to roughly $4,223 per year. North Dakota makes up ground with energy jobs, which draws considerable interest from rural seekers. While families tend to favor North Dakota for the tax break, the decision hinges on how much weight you put on housing costs.
When you're weighing Iowa against North Dakota, taxes make a real difference in your paycheck. Iowa tops out at 8.53%, while North Dakota reaches 2.90%. If you're pulling in $75,000, that spread works out to roughly $4,223 per year—though the tax number only tells part of the story.
🔑 Key Differences
- **State income tax**: Iowa at 8.53% vs North Dakota at 2.90%
- **Annual savings** (on $75,000): North Dakota saves you ~$4,223
- **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 | North Dakota |
|---|---|---|
| State Income Tax | 0.33% - 8.53% | 1.1% - 2.9% |
| 💰 On $40,000 Salary |
State Tax: $1,772
Take Home: $38,228
|
State Tax: $800
Take Home: $39,200
+$972
|
| 💰 On $60,000 Salary |
State Tax: $2,658
Take Home: $57,342
|
State Tax: $1,200
Take Home: $58,800
+$1,458
|
| 💰 On $100,000 Salary |
State Tax: $4,430
Take Home: $95,570
|
State Tax: $2,000
Take Home: $98,000
+$2,430
|
| 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. | North Dakota offers affordable costs in most areas, though energy boom towns experienced temporary inflation. Fargo, Bismarck, Grand Forks, and Minot maintain housing costs well below national averages - quality homes typically sell for $200,000-300,000. Property taxes stay moderate. Heating costs run substantial given extreme winters - proper housing, vehicles, and heating add expenses not faced in milder climates. Groceries and services generally cost less than national averages. Overall affordability means moderate incomes support comfortable lifestyles for those willing to endure harsh winters. |
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
North Dakota
✓ Advantages
- Low cost of living
- Strong energy sector
- Low unemployment
- No state estate tax
⚠ Considerations
- Extremely cold winters
- Remote location
- Limited metro areas
- Oil industry volatility
Bottom Line
From a tax standpoint, North Dakota delivers about $4,223 more take-home at $75,000. Iowa compensates through energy jobs, keeping it competitive for certain demographics. families tend to choose North Dakota, while rural seekers populations often lean toward Iowa despite higher taxes.📢 Share This Comparison
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