Iowa vs Arkansas Taxes: Income, Property & Sales

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

Iowa vs Arkansas Income Tax Comparison

	Iowa	Arkansas
Income Tax Rates & Thresholds	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+	2.00%: $0-$4,300 4.00%: $4,300-$8,500 4.90%: $8,501+
Median Income	$76,320	$53,980
Income Tax Paid On Median Household Income	$13,833	$7,352
Income After Tax Based on Median Household Income	$62,487	$46,628

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Iowa vs Arkansas Property Tax Comparison

	Iowa	Arkansas
Average Property Tax Rate	1.25%	0.53%
Average House Price By State	$215,458	$199,284
Average Property Tax Owed Per Year	$2,693	$1,056
Income After Income Taxes & Property Taxes Based On Median State Household Income	$59,794	$45,572

Iowa vs Arkansas Sales Tax Comparison

	Iowa	Arkansas
Average State Sales Tax	6.00%	6.50%
Average Local Sales Tax Across the State	0.94%	2.97%
Average Combined Sales Tax Rate	6.94%	9.47%
Maximum Amount of Sales Tax Paid Based on Median Household Income	$3,880	$3,942
Maximum Disposable Income Based on Median Household Income	$55,913	$41,629

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

	Iowa	Arkansas
Income Tax Owed	$4,786	$4,906
After Tax Income	$35,214	$35,094
Income After Income & Property Tax	$32,521	$34,038
Maximum Disposable Income After Income, Property & Sales Taxes	$30,410	$31,093

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

	Iowa	Arkansas
Income Tax Owed	$9,028	$8,933
After Tax Income	$50,972	$51,067
Income After Income & Property Tax	$48,279	$50,011
Maximum Disposable Income After Income, Property & Sales Taxes	$45,146	$45,684

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

	Iowa	Arkansas
Income Tax Owed	$14,916	$14,433
After Tax Income	$65,084	$65,567
Income After Income & Property Tax	$62,391	$64,511
Maximum Disposable Income After Income, Property & Sales Taxes	$58,342	$58,930

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

	Iowa	Arkansas
Income Tax Owed	$21,015	$19,933
After Tax Income	$78,985	$80,067
Income After Income & Property Tax	$76,292	$79,011
Maximum Disposable Income After Income, Property & Sales Taxes	$71,341	$72,176

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

	Iowa	Arkansas
Income Tax Owed	$14,448	$13,525
After Tax Income	$85,552	$86,475
Income After Income & Property Tax	$82,859	$85,419
Maximum Disposable Income After Income, Property & Sales Taxes	$77,482	$78,029

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

	Iowa	Arkansas
Income Tax Owed	$28,768	$26,330
After Tax Income	$121,232	$123,670
Income After Income & Property Tax	$118,539	$122,614
Maximum Disposable Income After Income, Property & Sales Taxes	$110,846	$112,007

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

	Iowa	Arkansas
Income Tax Owed	$44,033	$40,080
After Tax Income	$155,967	$159,920
Income After Income & Property Tax	$153,274	$158,864
Maximum Disposable Income After Income, Property & Sales Taxes	$143,327	$145,121

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

	Iowa	Arkansas
Income Tax Owed	$60,217	$54,749
After Tax Income	$189,783	$195,251
Income After Income & Property Tax	$187,090	$194,195
Maximum Disposable Income After Income, Property & Sales Taxes	$174,948	$177,395

FAQ

Does Iowa or Arkansas have lower income taxes?

Iowa’s income tax falls into the following range:

• 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+

Whereas Arkansas’s income tax is the following

• 2.00%: $0-$4,300
• 4.00%: $4,300-$8,500
• 4.90%: $8,501+

Does Iowa or Arkansas have lower property taxes?

Iowa has an average property tax rate of 1.25%

In comparison, Arkansas has an average property tax rate of 0.53%

Does Iowa or Arkansas have lower sales taxes?

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%.

In contrast, Arkansas has a state sales tax rate of 6.50% and an average local rate of 2.97% for a combined total rate of 9.47%.

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

Based on median household income after income, property and sales taxes Iowa gives you a maximum amount of disposable income of $55,913

In comparison, Arkansas gives you $41,629.

More Comparisons:

Iowa vs Mississippi
Iowa vs Kansas
Iowa vs New Mexico
Iowa vs Nebraska
Iowa vs Idaho

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/