Income Reality in Iowa — Taxes, Housing & Salary
Affordable, reducing tax burden, agricultural heartland
Data: 2026-Q2 · BLS · HUD · KFFIncome tax overview
3.8% flat rate effective Jan 1 2025 (major reform, Tax Foundation)
Housing snapshot
Median 1BR rent in Des Moines is approximately $1,000. Other Iowa cities like Cedar Rapids and Davenport are similarly affordable.
Cost of living summary
At an index of 88, Iowa is about 12% cheaper than the national average of 100.
Iowa is phasing down its income tax rate to 3.9% by 2026. Combined with low housing costs, Iowa offers strong purchasing power for middle-income earners.
Salary reality examples
Very comfortable in most Iowa cities. Housing is among the most affordable in the country.
Excellent purchasing power. Iowa's low costs allow meaningful savings at this income level.
Strong flexibility. Iowa provides high real income relative to nominal salary.
FAQ — Income Reality in Iowa
What is Iowa's income tax rate?
Iowa has a flat income tax rate of 6% in 2024, scheduled to reduce to 3.9% by 2026.
Is Iowa affordable?
Yes. Iowa has a cost of living index of 88, with housing especially below the national average.
Related tools
Cost of Living Index from C2ER. This is a picture, not a verdict.