Iowa vs Vermont: Tax Impact on Your Salary
VSDetailed comparison of tax rates, cost of living, and quality of life
📌 Iowa delivers about $187 more in annual take-home at $85,000 (8.53% versus 8.75%). Vermont keeps competitive by providing rural beauty. The decision often centers on education system rather than tax rates alone.
Iowa and Vermont differ notably on income tax: 8.53% versus 8.75%. The practical impact at $85,000 runs about $187 per year. Most people considering a move look at this alongside cost of living, job market, and lifestyle factors.
🔑 Key Differences
- **State income tax**: Iowa at 8.53% vs Vermont at 8.75%
- **Annual savings** (on $85,000): Iowa saves you ~$187
- **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 | Vermont |
|---|---|---|
| State Income Tax | 0.33% - 8.53% | 3.35% - 8.75% |
| 💰 On $40,000 Salary |
State Tax: $1,772
Take Home: $38,228
+$648
|
State Tax: $2,420
Take Home: $37,580
|
| 💰 On $60,000 Salary |
State Tax: $2,658
Take Home: $57,342
+$972
|
State Tax: $3,630
Take Home: $56,370
|
| 💰 On $100,000 Salary |
State Tax: $4,430
Take Home: $95,570
+$1,620
|
State Tax: $6,050
Take Home: $93,950
|
| 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. | Vermont ranks among more expensive states. Housing costs substantial - median prices often exceed $350,000-400,000 in desirable areas. Property taxes run high. Heating costs significant given harsh winters. Groceries and services cost more than national averages. Sales tax reaches 6%. The high tax burden combined with elevated costs means even solid six-figure incomes require careful budgeting. |
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
Vermont
✓ Advantages
- Excellent quality of life and natural beauty
- Strong sense of community
- Good education system
- Beautiful seasons and outdoor recreation
- Progressive values and culture
⚠ Considerations
- Higher state income tax (up to 8.75%)
- Limited job market and opportunities
- Very cold winters with heavy snow
- High cost of living especially housing
- Remote location with limited access to major cities
Bottom Line
Bottom line: Iowa saves you about $187 annually at $85,000 on taxes alone. Vermont maintains appeal through rural beauty, attracting people willing to pay more for what it offers. The choice often comes down to {factor} versus direct financial savings.📢 Share This Comparison
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