Iowa vs Nebraska: Tax & Cost Comparison
2026Side-by-side Iowa vs Nebraska comparison: state income tax, sales tax, property tax, cost of living, and minimum wage for 2026. Plains-state pair — IA dropping to 3.9% flat by 2027 vs NE dropping to 3.99% top by 2027 — both pursuing tax competitiveness.
Written and reviewed by Konstantin Iakovlev · Methodology · Updated
Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.
| Tax / Cost Factor | Iowa | Nebraska |
|---|---|---|
| State income tax (top rate) | 3.80% (flat) | 4.55% (progressive) |
| State sales tax | 6.00% | 5.50% |
| Avg. effective property tax | 1.47% | 1.52% |
| Minimum wage (2026) | $7.25/hr | $15.00/hr |
| State Disability Insurance (SDI) | No | No |
| Paid Family Leave | No | No |
| Median home price (Q4 2025) | $245,000 | $260,000 |
| Foreclosure type | judicial | mixed |
| BEA Regional Price Parity (2024) | 89.4 | 89.3 |
| Median household income (2024) | $70,570 | $71,720 |
| Median 2-bedroom rent (Q4 2025) | $1,130/mo | $1,160/mo |
Worked example: $75,000 single filer, 2026
For a single filer earning $75,000 in 2026, the rough state-tax burden comparison:
- Iowa: estimated state income tax ≈ $1,995, plus federal income tax (≈ $7,300 at 22% marginal), FICA $5,738, sales tax 6.00% on consumption.
- Nebraska: estimated state income tax ≈ $2,389, plus federal $7,300, FICA $5,738, sales tax 5.50% on consumption.
Property tax depends entirely on home value. On a $400,000 home: Iowa ≈ $$5,880/year; Nebraska ≈ $$6,080/year.
Combined annual state burden (income + property on $400K + 6% of $50K consumption sales tax) — Iowa: ~$10,875; Nebraska: ~$11,219.
Why this comparison? Plains-state pair — IA dropping to 3.9% flat by 2027 vs NE dropping to 3.99% top by 2027 — both pursuing tax competitiveness.
Drill into specific calculators
Frequently asked questions
Which is cheaper to live in: Iowa or Nebraska?
By BEA Regional Price Parity (2024), Iowa has a cost-of-living index of 89.4 and Nebraska is 89.3 (US average = 100). Median household income: Iowa $70,570, Nebraska $71,720. Median 2-bedroom rent: Iowa $1,130/mo, Nebraska $1,160/mo. Nebraska is the lower-cost state by this measure.
Does Iowa or Nebraska have lower income tax in 2026?
Iowa has a top income-tax rate of 3.80%; Nebraska has 4.55%. Iowa is lower at the top bracket.
What about property taxes in Iowa vs Nebraska?
Iowa's average effective property tax rate is 1.47% (e.g., $5,880/year on a $400,000 home). Nebraska's rate is 1.52% ($6,080/year on $400K). Iowa has the lower property tax burden.
Where is the minimum wage higher: Iowa or Nebraska?
Iowa's 2026 minimum wage is $7.25/hour; Nebraska's is $13.50/hour. Nebraska is higher.