Side-by-side tax comparison between Iowa (5.7% top rate) and Minnesota (9.85% top rate).
| Salary | Iowa | Minnesota | Difference | Winner |
|---|---|---|---|---|
| $50K | $40,160 | $38,604 | −$1,556 | Iowa |
| $75K | $58,096 | $55,762 | −$2,334 | Iowa |
| $100K | $74,615 | $71,503 | −$3,113 | Iowa |
| $150K | $107,034 | $102,365 | −$4,669 | Iowa |
| $200K | $140,553 | $134,328 | −$6,225 | Iowa |
Iowa offers higher take-home pay at every salary level. Iowa's 5.7% top rate is more favorable than Minnesota's 9.85%. At $100K, the difference is $3,113/year — that’s $259/month.
However, cost of living matters. Iowa has a cost index of 89 while Minnesota is at 99. With similar costs of living, the tax difference is the main factor.