New Jersey vs Iowa Taxes: Income, Property & Sales

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

New Jersey vs Iowa Income Tax Comparison

	New Jersey	Iowa
Income Tax Rates & Thresholds	1.40%: $0-$20,000 1.75%: $20,001-$35,000 3.50%: $35,001-$40,000 5.53%: $40,001-$75,000 6.37%: $75,001-$500,000 8.97%: $500,001-$1,000,000 10.75%: $1,000,001+	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	$92,340	$76,320
Income Tax Paid On Median Household Income	$16,776	$13,833
Income After Tax Based on Median Household Income	$75,564	$62,487

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New Jersey vs Iowa Property Tax Comparison

	New Jersey	Iowa
Average Property Tax Rate	1.79%	1.25%
Average House Price By State	$500,717	$215,458
Average Property Tax Owed Per Year	$8,963	$2,693
Income After Income Taxes & Property Taxes Based On Median State Household Income	$66,601	$59,794

New Jersey vs Iowa Sales Tax Comparison

	New Jersey	Iowa
Average State Sales Tax	6.63%	6.00%
Average Local Sales Tax Across the State	-0.03%	0.94%
Average Combined Sales Tax Rate	6.60%	6.94%
Maximum Amount of Sales Tax Paid Based on Median Household Income	$4,124	$3,880
Maximum Disposable Income Based on Median Household Income	$62,478	$55,913

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

	New Jersey	Iowa
Income Tax Owed	$3,723	$4,786
After Tax Income	$36,277	$35,214
Income After Income & Property Tax	$27,314	$32,521
Maximum Disposable Income After Income, Property & Sales Taxes	$25,623	$30,410

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

	New Jersey	Iowa
Income Tax Owed	$7,736	$9,028
After Tax Income	$52,264	$50,972
Income After Income & Property Tax	$43,301	$48,279
Maximum Disposable Income After Income, Property & Sales Taxes	$40,620	$45,146

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

	New Jersey	Iowa
Income Tax Owed	$13,276	$14,916
After Tax Income	$66,724	$65,084
Income After Income & Property Tax	$57,761	$62,391
Maximum Disposable Income After Income, Property & Sales Taxes	$54,185	$58,342

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

	New Jersey	Iowa
Income Tax Owed	$18,950	$21,015
After Tax Income	$81,050	$78,985
Income After Income & Property Tax	$72,087	$76,292
Maximum Disposable Income After Income, Property & Sales Taxes	$67,624	$71,341

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

	New Jersey	Iowa
Income Tax Owed	$11,121	$14,448
After Tax Income	$88,879	$85,552
Income After Income & Property Tax	$79,916	$82,859
Maximum Disposable Income After Income, Property & Sales Taxes	$74,968	$77,482

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

	New Jersey	Iowa
Income Tax Owed	$23,941	$28,768
After Tax Income	$126,059	$121,232
Income After Income & Property Tax	$117,096	$118,539
Maximum Disposable Income After Income, Property & Sales Taxes	$109,846	$110,846

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

	New Jersey	Iowa
Income Tax Owed	$38,109	$44,033
After Tax Income	$161,891	$155,967
Income After Income & Property Tax	$152,928	$153,274
Maximum Disposable Income After Income, Property & Sales Taxes	$143,460	$143,327

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

	New Jersey	Iowa
Income Tax Owed	$53,213	$60,217
After Tax Income	$196,787	$189,783
Income After Income & Property Tax	$187,824	$187,090
Maximum Disposable Income After Income, Property & Sales Taxes	$176,195	$174,948

FAQ

Does New Jersey or Iowa have lower income taxes?

New Jersey’s income tax falls into the following range:

1.40%: $0-$20,000

1.75%: $20,001-$35,000

3.50%: $35,001-$40,000

5.53%: $40,001-$75,000

6.37%: $75,001-$500,000

8.97%: $500,001-$1,000,000

10.75%: $1,000,001+

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 New Jersey or Iowa have lower property taxes?

New Jersey has an average property tax rate of 1.79%

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

Does New Jersey or Iowa have lower sales taxes?

New Jersey has a state sales tax rate of 6.63% and an average local rate of -0.03% for a combined total rate of 6.60%.

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 New Jersey or Iowa?

Based on median household income after income, property and sales taxes New Jersey gives you a maximum amount of disposable income of $62,478

In comparison, Iowa gives you $55,913.

More Comparisons:

New Jersey vs Nevada
New Jersey vs Arkansas
New Jersey vs Mississippi
New Jersey vs Kansas
New Jersey vs New Mexico


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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/