Alabama vs Iowa Taxes: Income, Property & Sales

Does Alabama or Iowa have lower taxes? We answer that in a variety of ways below:

Alabama vs Iowa Income Tax Comparison

	Alabama	Iowa
Income Tax Rates & Thresholds	2.00%: $0-$500 4.00%: $501-$3000 5.00%: $3,001+	0.33%: $0-$1,743 0.67%: $1,744-$3,486 2.25%: $3,487-$6972 4.14%: $6,973-$15,687 5.63%: $15,688-$26,145 5.96%: $26,146-$34,860 6.25%: $34,861-$52,290 7.44%: $52,291-$78,435 8.53%: $78,436+
Median Income	$59,910	$76,320
Income Tax Paid On Median Household Income	$8,703	$13,833
Income After Tax Based on Median Household Income	$51,207	$62,487

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Alabama vs Iowa Property Tax Comparison

	Alabama	Iowa
Average Property Tax Rate	0.37%	1.25%
Average House Price By State	$220,419	$215,458
Average Property Tax Owed Per Year	$816	$2,693
Income After Income Taxes & Property Taxes Based On Median State Household Income	$50,391	$59,794

Alabama vs Iowa Sales Tax Comparison

	Alabama	Iowa
Average State Sales Tax	4.00%	6.00%
Average Local Sales Tax Across the State	5.24%	0.94%
Average Combined Sales Tax Rate	9.24%	6.94%
Maximum Amount of Sales Tax Paid Based on Median Household Income	$4,262	$3,880
Maximum Disposable Income Based on Median Household Income	$46,129	$55,913

After Tax Comparison Earning $40,000 Per Year Filing As Single

	Alabama	Iowa
Income Tax Owed	$4,800	$4,786
After Tax Income	$35,200	$35,214
Income After Income & Property Tax	$34,384	$32,521
Maximum Disposable Income After Income, Property & Sales Taxes	$31,476	$30,410

After Tax Comparison Earning $60,000 Per Year Filing As Single

	Alabama	Iowa
Income Tax Owed	$8,728	$9,028
After Tax Income	$51,272	$50,972
Income After Income & Property Tax	$50,456	$48,279
Maximum Disposable Income After Income, Property & Sales Taxes	$46,189	$45,146

After Tax Comparison Earning $80,000 Per Year Filing As Single

	Alabama	Iowa
Income Tax Owed	$14,128	$14,916
After Tax Income	$65,872	$65,084
Income After Income & Property Tax	$65,056	$62,391
Maximum Disposable Income After Income, Property & Sales Taxes	$59,554	$58,342

After Tax Comparison Earning $100,000 Per Year Filing As Single

	Alabama	Iowa
Income Tax Owed	$19,528	$21,015
After Tax Income	$80,472	$78,985
Income After Income & Property Tax	$79,656	$76,292
Maximum Disposable Income After Income, Property & Sales Taxes	$72,919	$71,341

After Tax Comparison Earning $100,000 Per Year Filing As Married Filing Jointly

	Alabama	Iowa
Income Tax Owed	$12,856	$14,448
After Tax Income	$87,144	$85,552
Income After Income & Property Tax	$86,328	$82,859
Maximum Disposable Income After Income, Property & Sales Taxes	$79,026	$77,482

After Tax Comparison Earning $150,000 Per Year Filing As Married Filing Jointly

	Alabama	Iowa
Income Tax Owed	$25,411	$28,768
After Tax Income	$124,589	$121,232
Income After Income & Property Tax	$123,773	$118,539
Maximum Disposable Income After Income, Property & Sales Taxes	$113,304	$110,846

After Tax Comparison Earning $200,000 Per Year Filing As Married Filing Jointly

	Alabama	Iowa
Income Tax Owed	$38,911	$44,033
After Tax Income	$161,089	$155,967
Income After Income & Property Tax	$160,273	$153,274
Maximum Disposable Income After Income, Property & Sales Taxes	$146,717	$143,327

After Tax Comparison Earning $250,000 Per Year Filing As Married Filing Jointly

	Alabama	Iowa
Income Tax Owed	$53,330	$60,217
After Tax Income	$196,670	$189,783
Income After Income & Property Tax	$195,854	$187,090
Maximum Disposable Income After Income, Property & Sales Taxes	$179,288	$174,948

FAQ

Does Alabama or Iowa have lower income taxes?

Alabama’s income tax falls into the following range:

• 2.00%: $0-$500
• 4.00%: $501-$3000
• 5.00%: $3,001+

Whereas Iowa’s income tax is the following

• 0.33%: $0-$1,743
• 0.67%: $1,744-$3,486
• 2.25%: $3,487-$6972
• 4.14%: $6,973-$15,687
• 5.63%: $15,688-$26,145
• 5.96%: $26,146-$34,860
• 6.25%: $34,861-$52,290
• 7.44%: $52,291-$78,435
• 8.53%: $78,436+

Does Alabama or Iowa have lower property taxes?

Alabama has an average property tax rate of 0.37%

In comparison, Iowa has an average property tax rate of 1.25%

Does Alabama or Iowa have lower sales taxes?

Alabama has a state sales tax rate of 4.00% and an average local rate of 5.24% for a combined total rate of 9.24%.

In contrast, Iowa has a state sales tax rate of 6.00% and an average local rate of 0.94% for a combined total rate of 6.94%.

Do you get to keep more money in Alabama or Iowa?

Based on median household income after income, property and sales taxes Alabama gives you a maximum amount of disposable income of $46,129

In comparison, Iowa gives you $55,913.

More Comparisons:

Alabama vs Nevada
Alabama vs Arkansas
Alabama vs Mississippi
Alabama vs Kansas
Alabama vs New Mexico

Sources:

https://en.wikipedia.org/wiki/State_income_tax#Rates_by_jurisdiction

https://www.bankrate.com/real-estate/property-tax-by-state/#by-state

https://fred.stlouisfed.org/release/tables?eid=259515&rid=249

https://www.fool.com/the-ascent/research/average-house-price-state/

https://taxfoundation.org/data/all/state/2022-sales-taxes/

https://www.forbes.com/advisor/income-tax-calculator/