Comprehensive salary data, cost of living, tax rates, and employment information for Iowa.
Reviewed by Alexander O.M., MBA, BSc Engineering•Updated
Iowa completed a major income-tax reform between 2022 and 2025 that consolidated the state's bracket structure into a flat 3.8% rate — one of the lowest flat rates in the country. That puts Iowa's tax burden well below most Midwestern neighbours. The $72,429 median household income is slightly above the national average, and the cost-of-living index of 90 translates to real purchasing power at the upper end of the Midwest. The economy is more diverse than the agriculture-dominant image suggests: Des Moines has become one of the largest insurance and financial-services hubs in the country, anchored by Principal Financial Group (Fortune 500), Nationwide's major campus, and Wells Fargo's largest employee site outside of its San Francisco headquarters. Agriculture (corn, soy, pork — Iowa leads the US in all three) and manufacturing (John Deere in Waterloo, Collins Aerospace in Cedar Rapids) fill out the other main employment clusters. The $7.25/hour minimum wage remains at the federal floor. Property taxes have been trending down after a 2023 reform that tightened assessment growth. Iowa has no estate or inheritance tax as of 2025 (the inheritance tax phased out under earlier reforms). Full breakdown follows.
Median Individual
$35,100
per year
Median Household
$72,429
per year
Cost of Living
90
Affordable (US avg = 100)
State Income Tax
3.8%
rate
Salary Overview for Iowa
The median individual income in Iowa is $35,100 per year, while the mean (average) individual income is $44,210. The median household income is $72,429.
Cost of Living Adjusted Salary
Iowa's cost of living index is 90 (national average = 100). This means the median salary of $35,100 in Iowa has the purchasing power of approximately $39,000 at the national average cost of living. Your dollar goes further in Iowa than in most states.
Minimum Wage in Iowa
The current minimum wage in Iowa is $7.25/hour, which equals approximately $15,080 per year for a full-time worker (40 hours/week, 52 weeks). See our complete Iowa minimum wage guide for tipped wages, scheduled increases, and more.
Top Employers in Iowa
University of Iowa
UnityPoint Health
Principal Financial
Major Industries in Iowa
Agriculture
Manufacturing
Finance
Tax Rates in Iowa
See the full tax breakdown including income tax, sales tax, property tax, and more on our Iowa tax rates page.
Calculate Your Take-Home Pay
Use our Salary Calculator to convert between hourly, weekly, monthly, and annual pay, and estimate your take-home pay in Iowa after federal and state taxes.