Minnesota vs Iowa Taxes: Income, Property & Sales

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

Minnesota vs Iowa Income Tax Comparison

	Minnesota	Iowa
Income Tax Rates & Thresholds	5.35%: $0-$28,080 6.80%: $28,081-$92,230 7.85%: $92,231-$171,220 9.85%: $171,221+	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	$90,390	$76,320
Income Tax Paid On Median Household Income	$17,516	$13,833
Income After Tax Based on Median Household Income	$72,874	$62,487

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Minnesota vs Iowa Property Tax Comparison

	Minnesota	Iowa
Average Property Tax Rate	0.90%	1.25%
Average House Price By State	$336,279	$215,458
Average Property Tax Owed Per Year	$3,027	$2,693
Income After Income Taxes & Property Taxes Based On Median State Household Income	$69,847	$59,794

Minnesota vs Iowa Sales Tax Comparison

	Minnesota	Iowa
Average State Sales Tax	6.88%	6.00%
Average Local Sales Tax Across the State	0.61%	0.94%
Average Combined Sales Tax Rate	7.49%	6.94%
Maximum Amount of Sales Tax Paid Based on Median Household Income	$4,867	$3,880
Maximum Disposable Income Based on Median Household Income	$64,980	$55,913

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

	Minnesota	Iowa
Income Tax Owed	$4,490	$4,786
After Tax Income	$35,510	$35,214
Income After Income & Property Tax	$32,483	$32,521
Maximum Disposable Income After Income, Property & Sales Taxes	$30,220	$30,410

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

	Minnesota	Iowa
Income Tax Owed	$8,763	$9,028
After Tax Income	$51,237	$50,972
Income After Income & Property Tax	$48,210	$48,279
Maximum Disposable Income After Income, Property & Sales Taxes	$44,851	$45,146

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

	Minnesota	Iowa
Income Tax Owed	$14,523	$14,916
After Tax Income	$65,477	$65,084
Income After Income & Property Tax	$62,450	$62,391
Maximum Disposable Income After Income, Property & Sales Taxes	$58,099	$58,342

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

	Minnesota	Iowa
Income Tax Owed	$20,283	$21,015
After Tax Income	$79,717	$78,985
Income After Income & Property Tax	$76,690	$76,292
Maximum Disposable Income After Income, Property & Sales Taxes	$71,347	$71,341

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

	Minnesota	Iowa
Income Tax Owed	$12,931	$14,448
After Tax Income	$87,069	$85,552
Income After Income & Property Tax	$84,042	$82,859
Maximum Disposable Income After Income, Property & Sales Taxes	$78,186	$77,482

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

	Minnesota	Iowa
Income Tax Owed	$26,386	$28,768
After Tax Income	$123,614	$121,232
Income After Income & Property Tax	$120,587	$118,539
Maximum Disposable Income After Income, Property & Sales Taxes	$112,185	$110,846

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

	Minnesota	Iowa
Income Tax Owed	$40,903	$44,033
After Tax Income	$159,097	$155,967
Income After Income & Property Tax	$156,070	$153,274
Maximum Disposable Income After Income, Property & Sales Taxes	$145,195	$143,327

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

	Minnesota	Iowa
Income Tax Owed	$56,747	$60,217
After Tax Income	$193,253	$189,783
Income After Income & Property Tax	$190,226	$187,090
Maximum Disposable Income After Income, Property & Sales Taxes	$176,971	$174,948

FAQ

Does Minnesota or Iowa have lower income taxes?

Minnesota’s income tax falls into the following range:

• 5.35%: $0-$28,080
• 6.80%: $28,081-$92,230
• 7.85%: $92,231-$171,220
• 9.85%: $171,221+

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 Minnesota or Iowa have lower property taxes?

Minnesota has an average property tax rate of 0.90%

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

Does Minnesota or Iowa have lower sales taxes?

Minnesota has a state sales tax rate of 6.88% and an average local rate of 0.61% for a combined total rate of 7.49%.

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 Minnesota or Iowa?

Based on median household income after income, property and sales taxes Minnesota gives you a maximum amount of disposable income of $64,980

In comparison, Iowa gives you $55,913.

More Comparisons:

Minnesota vs Nevada
Minnesota vs Arkansas
Minnesota vs Mississippi
Minnesota vs Kansas
Minnesota 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/