Iowa vs New Mexico Taxes: Income, Property & Sales

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

Iowa vs New Mexico Income Tax Comparison

	Iowa	New Mexico
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+	1.70%: $0-$5,500 3.20%: $5,501-$11,000 4.70%: $11,001-$16,000 4.90%: $16,001-$210,000 5.90%: $210,001+
Median Income	$76,320	$56,420
Income Tax Paid On Median Household Income	$13,833	$7,031
Income After Tax Based on Median Household Income	$62,487	$49,389

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Iowa vs New Mexico Property Tax Comparison

	Iowa	New Mexico
Average Property Tax Rate	1.25%	0.60%
Average House Price By State	$215,458	$293,766
Average Property Tax Owed Per Year	$2,693	$1,763
Income After Income Taxes & Property Taxes Based On Median State Household Income	$59,794	$47,626

Iowa vs New Mexico Sales Tax Comparison

	Iowa	New Mexico
Average State Sales Tax	6.00%	5.13%
Average Local Sales Tax Across the State	0.94%	2.71%
Average Combined Sales Tax Rate	6.94%	7.84%
Maximum Amount of Sales Tax Paid Based on Median Household Income	$3,880	$3,462
Maximum Disposable Income Based on Median Household Income	$55,913	$44,164

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

	Iowa	New Mexico
Income Tax Owed	$4,786	$4,086
After Tax Income	$35,214	$35,914
Income After Income & Property Tax	$32,521	$34,151
Maximum Disposable Income After Income, Property & Sales Taxes	$30,410	$31,669

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

	Iowa	New Mexico
Income Tax Owed	$9,028	$7,994
After Tax Income	$50,972	$52,006
Income After Income & Property Tax	$48,279	$50,243
Maximum Disposable Income After Income, Property & Sales Taxes	$45,146	$46,591

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

	Iowa	New Mexico
Income Tax Owed	$14,916	$13,374
After Tax Income	$65,084	$66,626
Income After Income & Property Tax	$62,391	$64,863
Maximum Disposable Income After Income, Property & Sales Taxes	$58,342	$60,148

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

	Iowa	New Mexico
Income Tax Owed	$21,015	$18,754
After Tax Income	$78,985	$81,246
Income After Income & Property Tax	$76,292	$79,483
Maximum Disposable Income After Income, Property & Sales Taxes	$71,341	$73,705

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

	Iowa	New Mexico
Income Tax Owed	$14,448	$11,704
After Tax Income	$85,552	$88,296
Income After Income & Property Tax	$82,859	$86,533
Maximum Disposable Income After Income, Property & Sales Taxes	$77,482	$80,242

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

	Iowa	New Mexico
Income Tax Owed	$28,768	$24,209
After Tax Income	$121,232	$125,791
Income After Income & Property Tax	$118,539	$124,028
Maximum Disposable Income After Income, Property & Sales Taxes	$110,846	$115,012

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

	Iowa	New Mexico
Income Tax Owed	$44,033	$37,659
After Tax Income	$155,967	$162,341
Income After Income & Property Tax	$153,274	$160,578
Maximum Disposable Income After Income, Property & Sales Taxes	$143,327	$148,904

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

	Iowa	New Mexico
Income Tax Owed	$60,217	$52,028
After Tax Income	$189,783	$197,972
Income After Income & Property Tax	$187,090	$196,209
Maximum Disposable Income After Income, Property & Sales Taxes	$174,948	$181,945

FAQ

Does Iowa or New Mexico 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 New Mexico’s income tax is the following

• 1.70%: $0-$5,500
• 3.20%: $5,501-$11,000
• 4.70%: $11,001-$16,000
• 4.90%: $16,001-$210,000
• 5.90%: $210,001+

Does Iowa or New Mexico have lower property taxes?

Iowa has an average property tax rate of 1.25%

In comparison, New Mexico has an average property tax rate of 0.60%

Does Iowa or New Mexico 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, New Mexico has a state sales tax rate of 5.13% and an average local rate of 2.71% for a combined total rate of 7.84%.

Do you get to keep more money in Iowa or New Mexico?

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, New Mexico gives you $44,164.

More Comparisons:

Iowa vs Nebraska
Iowa vs Idaho
Iowa vs West Virginia
Iowa vs Hawaii
Iowa vs New Hampshire

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/