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HEAD-TO-HEAD TAX COMPARISON · 2026

COUNTRY A Iowa VS COUNTRY B Texas

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

Daniel · CountryTaxCalc Updated April 2026 Tax Comparison 2026
Calculate your take-home → See all comparisons →
OVERVIEW
Iowa has progressive income tax rates from 4.4% to 5.7%, while Texas has no state income tax (0%). Moving from Iowa to Texas saves $5,400/year on $100k income. However, Texas has higher property taxes (1.74% vs IA's 1.50%) and higher sales tax (8.20% vs 6.94%). Overall, Texas offers tax savings for …
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
4.4-5.7%
Progressive
4 brackets, up to 5.7%
🤠
COUNTRY B
Texas
TAX RATE
0%
No Income Tax
Constitutional prohibition
TYPICAL ANNUAL DIFFERENCE
Moving from Texas → Iowa at $100,000
$5,400
That's $450/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
🤠 TX TAX
SAVINGS
10-YEAR
$50,000
$2,400
$0
$2,400
$24,000
$100,000
$5,400
$0
$5,400
$54,000
$200,000
$11,100
$0
$11,100
$111,000
$500,000
$28,500
$0
$28,500
$285,000
💡

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🌽

Iowa Pros & Cons

+ PROS
  • Lower property tax: 1.50% (vs TX 1.74%) saves $600-$2,400/year
  • Lower sales tax: 6.94% (vs TX 8.20%) saves $126/year
  • Four seasons: Fall foliage, winter snow (vs TX heat year-round)
  • Lower cost of living: Housing 15% cheaper than Dallas/Houston
  • Better schools: IA ranks #10 vs TX #34 in K-12 education
− CONS
  • Income tax: 4.4-5.7% progressive costs $5,400 on $100k, $28,500 on $500k
  • Harsh winters: -10°F, snow, ice (vs TX mild winters)
  • Limited job market: Des Moines 700K vs Dallas 7.6M metro
  • Brain drain: Young professionals leave for Chicago/Minneapolis
  • Rural isolation: Outside Des Moines, limited amenities
🤠

Texas Pros & Cons

+ PROS
  • Zero income tax: Save $5,400/year on $100k, $28,500 on $500k
  • Business-friendly: No corporate income tax, lower regulations
  • Job growth: Austin/Dallas tech boom (Tesla, Oracle, Apple)
  • No retirement tax: $0 on Social Security, pensions, withdrawals
  • Sunny weather: 300 days sunshine (vs IA 200 days)
− CONS
  • Higher property tax: 1.74% (3rd highest in US) costs $600-$2,400 more/year
  • Higher sales tax: 8.20% (vs IA 6.94%) costs $126 more/year
  • Very hot summers: 100°F+ regularly (vs IA mild 85°F)
  • Car-dependent: Dallas/Austin require cars (no walkable transit)
  • Flat/dry landscape: Desert vs IA rolling farmland
FAQ

Frequently Asked Questions

How much will I save moving from Iowa to Texas?

On $100,000 income, Texas saves $5,400/year (IA 5.4% effective vs TX 0%). Over 10 years: $54,000. On $500,000 income: $28,500/year ($285,000 over 10 years). However, TX property tax is higher (1.74% vs IA 1.50%). On a $600k home, TX pays $10,440/year vs IA $9,000/year—difference of $1,440/year. For homeowners, this reduces net tax savings to $3,960/year.

Why are Texas property taxes so high?

Texas has 3rd highest property tax in US (1.74%) because with zero income tax, TX must fund all services through property/sales taxes. School districts alone levy 1.0-1.5%. Cities, counties, and special districts add more layers. This 'hidden taxation' replaces income tax most states charge. Iowa funds services through income tax (4.4-5.7%), reducing property tax reliance.

Is there significant Iowa to Texas migration?

Yes. In 2023, 4,872 people moved IA → TX (vs 2,134 TX → IA), net gain of 2,738 for Texas. Migration drivers IA → TX: no income tax (save $5,400+ annually), job opportunities (Austin/Dallas booming), warmer weather. Migration drivers TX → IA: four seasons, better schools, family ties, lower housing costs (Des Moines 15% cheaper than Dallas).

Which state is better for retirees?

Texas wins for retirees: zero income tax on all retirement income (Social Security, pensions, 401k withdrawals), no estate tax. Iowa taxes retirement income at 4.4-5.7% (though Social Security is exempt). However, Iowa has lower property tax (1.50% vs TX 1.74%). Choose TX for tax savings on retirement withdrawals. Choose IA for four seasons, lower property tax, proximity to family in Midwest.
From the brief
PT38.4%−9.6 vs. headline
CY17.8%incl. 60-day rule
AE 0.0%substance required
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