The Tax Brief real effective rates for 111+ countries — bi-weekly, free.
HEAD-TO-HEAD TAX COMPARISON · 2026

COUNTRY A Iowa VS COUNTRY B Missouri

Side-by-side analysis of income tax, effective rates, and take-home pay for Iowa and Missouri in 2026.

Daniel · CountryTaxCalc Updated May 2026 Tax Comparison 2026
Calculate your take-home → See all comparisons →
OVERVIEW
Iowa’s 3.8% flat rate beats Missouri’s 4.7% top rate for most earners, saving $571/year on $100,000 income. Iowa’s biggest advantage is its complete retirement income exemption introduced in 2023 — pensions, Social Security, and 401(k) withdrawals are all tax-free. Missouri partially exempts Social Security (under $85,000 single), but Iowa’s blanket exemption makes it the clear winner for retirees. Iowa’s property tax (1.57%) is notably higher than Missouri’s (0.93%), which may offset income tax savings for homeowners.
Section 01

The Big Picture

Top-line rates and effective take-home for a typical earner — including income tax, social contributions, and applicable surcharges.
🌽
COUNTRY A
Iowa
TAX RATE
3.8%
Flat Rate
Flat 3.8% since 2025, down from 8.53% top rate in 2022
⚪
COUNTRY B
Missouri
TAX RATE
4.7%
Near-Flat Rate
Top rate 4.7% applies above $9,072 — effectively flat for most earners
TYPICAL ANNUAL DIFFERENCE
Moving from Missouri → Iowa at $100,000
$571
That's $48/month back in your pocket
Section 02

Tax Savings by Income Level

Net take-home after all income tax, social contributions, and surcharges — for a single employee with no dependents.
GROSS INCOME
🌽 IA TAX
⚪ MO TAX
SAVINGS
10-YEAR
$50,000
$1,900
$2,021
$121
$1,210
$75,000
$2,850
$3,197
$347
$3,470
$100,000
$3,800
$4,371
$571
$5,710
$150,000
$5,700
$6,721
$1,021
$10,210
$250,000
$9,500
$11,421
$1,921
$19,210
$500,000
$19,000
$23,176
$4,176
$41,760
💡

CountryTaxCalc.com is reader-supported. When you use our partner links, we may earn a commission at no cost to you. This helps us provide free tax calculators and comparison tools. Learn more about our affiliate partnerships

Talk to a Real CPA

Taxhub

★ 4.8 verified reviews  ·  3,758 reviews

Moving between states? Multi-state returns, partial-year residency, and domicile changes are complex. Taxhub connects you with licensed CPAs who specialise in state tax moves.

⚠ Not for simple single-state returns. Free filing is fine for straightforward W-2 situations.

Talk to a CPA About Your State Move →

Interested in reaching this audience? Advertise on CountryTaxCalc →

🌽

Iowa Pros & Cons

+ PROS
  • Full retirement exemption: ALL pensions, Social Security, and 401(k) income tax-free since 2023
  • Lower income tax rate: 3.8% flat vs Missouri’s 4.7%, saving $571/year on $100k
  • No estate tax: Iowa eliminated its estate tax in 2022
  • Dramatic rate reduction: Iowa cut rates from 8.53% (2022) to 3.8% (2025) — ongoing reform trend
− CONS
  • Higher property tax: Iowa 1.57% vs Missouri 0.93% — costs $2,560 more/year on a $400k home
  • Harsh winters: Des Moines averages 34 inches of snow annually
  • Smaller job market: Des Moines metro 0.7M vs Kansas City metro 2.2M
  • Rural economy: limited tech sector and fewer Fortune 500 employers
⚪

Missouri Pros & Cons

+ PROS
  • Lower property tax: Missouri 0.93% vs Iowa 1.57% saves $2,560/year on a $400k home
  • Kansas City and St. Louis: two major metros with diverse job markets
  • Partial Social Security exemption: SS exempt for single filers under $85k, joint under $100k
  • No estate tax: Missouri also has no estate or inheritance tax
− CONS
  • Higher income tax rate: 4.7% top rate vs Iowa’s 3.8% costs $571 more on $100k
  • Retirement income taxed: pensions and 401(k) withdrawals fully taxable (only partial SS exemption)
  • Crime rates: Kansas City and St. Louis rank among highest crime cities in the US
  • Limited rate reform: Missouri’s 4.7% rate has not been reduced as aggressively as Iowa’s
FAQ

Frequently Asked Questions

Is Iowa really better than Missouri for retirees?

Yes, Iowa is clearly better for retirees. Since 2023, Iowa exempts all retirement income — Social Security, pensions, annuities, and 401(k)/IRA withdrawals are completely tax-free. Missouri only partially exempts Social Security (for those earning under $85k single or $100k married), and fully taxes pension and 401(k) income. A retiree with $80,000 in pension and SS income pays $0 in Iowa and up to $3,760 in Missouri.

How much does Iowa’s higher property tax offset its income tax savings?

Iowa’s property tax rate (1.57%) is significantly higher than Missouri’s (0.93%). On a $300,000 home, Iowa costs $4,710/year vs Missouri $2,790/year — a $1,920 annual difference. On a $400,000 home, the gap is $2,560/year. For workers saving $571 on income tax, Iowa’s property tax disadvantage more than wipes out the income savings unless you rent or own a modest home.

What was Iowa’s old top income tax rate before the reforms?

Iowa had one of the highest state income tax rates in the US. In 2022, the top rate was 8.53% on income above $78,435. The state passed major tax reform in 2022, phasing rates down to a single flat rate. By 2025, Iowa reached 3.8% flat, and the rate is scheduled to potentially fall further. This makes Iowa’s trajectory one of the most dramatic tax reform stories among US states in recent years.

Which state is better for high earners — Iowa or Missouri?

Iowa wins for high earners on income tax alone. At $250,000, Iowa costs $9,500 vs Missouri $11,421 — a $1,921 annual saving. At $500,000, Iowa saves $4,176/year. However, high earners who own expensive property may find Missouri’s lower property tax (0.93% vs 1.57%) partially or fully offsets this. The net winner depends on your home value, but Iowa’s flat rate provides more certainty as income scales.
From the brief
PT38.4%−9.6 vs. headline
CY17.8%incl. 60-day rule
AE 0.0%substance required
The Tax Brief · Subscribe free

More like this, every two weeks.

Verified rates, real after-tax figures, plain English. Free.

Bi-weekly. No spam. Unsubscribe in one click.