Iowa vs Utah Take-Home Pay Showdown
VSDetailed comparison of tax rates, cost of living, and quality of life
📌 Utah comes out ahead by approximately $3,680 annually at $100,000 income (4.85% compared to 8.53%). That said, Iowa pulls in residents attracted to outdoor recreation. The choice often comes down to whether housing costs or direct tax savings matters more to your situation.
Between Iowa's 8.53% and Utah's 4.85%, the tax differential hits around $3,680 yearly at $100,000. That's real money in anyone's book, even if the decision ultimately comes down to more than just tax policy.
🔑 Key Differences
- **State income tax**: Iowa at 8.53% vs Utah at 4.85%
- **Annual savings** (on $100,000): Utah saves you ~$3,680
- **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 | Utah |
|---|---|---|
| State Income Tax | 0.33% - 8.53% | 4.85% |
| 💰 On $40,000 Salary |
State Tax: $1,772
Take Home: $38,228
+$168
|
State Tax: $1,940
Take Home: $38,060
|
| 💰 On $60,000 Salary |
State Tax: $2,658
Take Home: $57,342
+$252
|
State Tax: $2,910
Take Home: $57,090
|
| 💰 On $100,000 Salary |
State Tax: $4,430
Take Home: $95,570
+$420
|
State Tax: $4,850
Take Home: $95,150
|
| 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. | Utah costs have increased substantially. Salt Lake City and surrounding areas command prices approaching expensive metros - median home prices often exceed $450,000-500,000. Provo-Orem follows similar trajectory. Smaller Utah cities offer better value. Property taxes stay moderate. Sales tax reaches 7-8%. The affordability advantage Utah once offered has compressed significantly as technology sector drives population growth and housing demand. |
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
Utah
✓ Advantages
- Flat 4.65% income tax is simple and predictable
- Strong growing technology sector
- Beautiful outdoor recreation and skiing
- Lower unemployment rates
- Young educated workforce
⚠ Considerations
- Rising housing costs especially in Salt Lake area
- Air quality issues in winter months
- Limited public transportation
- Sales tax can be high
- Some areas face water scarcity
Bottom Line
The tax advantage goes to Utah by roughly $3,680 per year at $100,000. Iowa keeps competitive by providing outdoor recreation. Whether you prioritize that savings or Iowa's advantages in {factor} typically determines which state works better for you.📢 Share This Comparison
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