Lower Manhattan skyline across New York Harbor, United States

Home / Relocation inside the US / Iowa

United StatesRelocation inside the US

Relocating to Iowa: state taxes, residency rules and cost of living

Official figures for Iowa: state income tax, capital gains, estate and inheritance tax, sales tax and the residency test, with rents, home values, price levels and safety from federal statistics.

Talk to a specialist
3.8%Top state income tax rate
6%State sales tax rate
$1,026Median gross rent per month
87.8Price level (US = 100)
Data updated 30 October 2026 Official sources: state revenue departments, Census Bureau, BEA, EIA, FBI Also served to AI agents via MCP

The short answer

What does it cost to live in Iowa?

Iowa state income tax: Flat rate of 3.8%. Median gross rent is $1,026 per month and the price level is 87.8 against a US average of 100. Sales, estate and inheritance taxes and the residency rule are set out below with their sources.

Evidence: Official source · Machine-readable data · As of 30 October 2026

State tax rules

State taxes in Iowa

Each rule below is read from the Iowa revenue department or statute and checked against an independent table. Local taxes are not included.

State income tax
Flat rate of 3.8%
Source
Estate tax
The Iowa estate tax has been repealed and does not apply to deaths on or after 1 January 2005.
Source
Inheritance tax
Iowa's inheritance tax is repealed for deaths on or after 1 January 2025, so no inheritance tax applies in 2026.
Source
Sales tax
Statewide rate 6%; local rates may be added
Source

State level only. Local income taxes (for example city or county taxes) and local sales taxes are added on top where they exist.

Cost of living

Housing, prices and safety in Iowa

Housing, prices and safety in Iowa
MetricValue
Median gross rent per month$1,026
Median home value$237,000
Property tax as a share of home value1.27%
Median real estate taxes paid per year$3,014
Median household income$76,483
Price level (US = 100)87.8
Housing price level (US = 100)65.3
Residential electricity price14.55 cents per kWh

Rent, home value, property tax and income: Census Bureau, American Community Survey 2025. Price levels: BEA Regional Price Parities 2024. Electricity: EIA, year to date through August 2026.

Back to the state overview · Methodology and sources

Questions

Living in Iowa: common questions

Does Iowa have a state income tax?

Iowa state income tax: Flat rate of 3.8%. Federal income tax applies in addition, as in every state.

What is the sales tax in Iowa?

The statewide sales tax rate in Iowa is 6%. Counties and cities may add local rates.

How much does housing cost in Iowa?

In Iowa the median gross rent is $1,026 per month and the median value of an owner-occupied home is $237,000, according to the Census Bureau American Community Survey 2025.

Information, not tax or legal advice. Rates are statutory state rates for the stated year; local income, sales and property taxes, deductions and federal tax are not included. Statistics are the latest official releases for the year shown. Confirm your own position with the state revenue department or a tax adviser.

Plan the move with a specialist

Residence, tax domicile and timing decide what a move is worth. Our consultants help you weigh state tax, cost of living and your immigration status together, in confidence.

Book a consultation
IowaConfidential consultation
Consult