1Iowa
Lowest20.8%
Overall effective tax rate
- Net
- Federal
- State
- FICA
- Federal income tax
- $7,670
- State income tax
- $2,198
- Payroll tax (FICA)
- $5,738
- Total tax
- $15,606
- Net income (annual)
- $59,394
Tax year 2026 · state vs state
Iowa vs New Jersey Income Tax Comparison (2026)
On a $75,000 salary (single filer, 2026), you pay $400 less state income tax a year in Iowa than in New Jersey, which is about $33 a month. At $150,000 the gap is $2,319 in favor of Iowa.
Iowa: 3.8% flatNew Jersey: up to 10.75%Updated October 10, 2026
Compare Iowa and New Jersey for your income
Estimate for education only, not tax advice. 2026 federal and state rules, standard deductions, no local taxes. How we calculate.
State comparison
Comparing 2 states, sorted by lowest overall tax rate.
2New Jersey
21.3%
Overall effective tax rate
- Net
- Federal
- State
- FICA
- Federal income tax
- $7,670
- State income tax
- $2,598
- Payroll tax (FICA)
- $5,738
- Total tax
- $16,005
- Net income (annual)
- $58,995
Advanced analysis (optional)
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💰 Monthly breakdown
Your take-home pay, spread across the year
Iowa
Monthly gross$6,250
Monthly tax$1,300
Monthly take-home$4,950
New Jersey
Monthly gross$6,250
Monthly tax$1,334
Monthly take-home$4,916
Estimates use 2026 federal and state rates, the standard deduction for your filing status and no local taxes. Rankings use state income tax only.
Iowa vs New Jersey: how the two systems differ
| Iowa | New Jersey | |
|---|---|---|
| Wage income tax | Flat 3.8% | Progressive, 7 brackets |
| Top rate | 3.8% | 10.75% |
| Lowest rate | 3.8% | 1.4% |
| Deductions and credits (single) | $16,100 standard deduction, $40 personal credit | $1,000 personal exemption |
State income tax and take-home pay at every salary
The same salary can leave you with different take-home pay depending on the state. This table applies each state’s 2026 rules to a single filer with no pre-tax contributions.
| Income | IA state tax | NJ state tax | Difference | IA take-home | NJ take-home |
|---|---|---|---|---|---|
| $30,000 | $488 | $438 | $51 less in New Jersey | $25,797 | $25,848 |
| $40,000 | $868 | $683 | $186 less in New Jersey | $33,452 | $33,638 |
| $50,000 | $1,248 | $1,215 | $33 less in New Jersey | $41,107 | $41,140 |
| $60,000 | $1,628 | $1,768 | $140 less in Iowa | $48,762 | $48,622 |
| $75,000 | $2,198 | $2,598 | $400 less in Iowa | $59,394 | $58,995 |
| $100,000 | $3,148 | $4,182 | $1,034 less in Iowa | $76,032 | $74,998 |
| $150,000 | $5,048 | $7,367 | $2,319 less in Iowa | $108,743 | $106,424 |
| $250,000 | $8,848 | $13,737 | $4,889 less in Iowa | $174,334 | $169,445 |
Single filer, 2026, federal standard deduction. Take-home is after federal, state and payroll tax. No local taxes.
Married filing jointly
| Income | IA state tax | NJ state tax | Difference | IA take-home | NJ take-home |
|---|---|---|---|---|---|
| $75,000 | $1,546 | $1,400 | $146 less in New Jersey | $63,076 | $63,223 |
| $100,000 | $2,496 | $2,640 | $144 less in Iowa | $82,214 | $82,070 |
| $150,000 | $4,396 | $5,405 | $1,009 less in Iowa | $118,789 | $117,780 |
| $250,000 | $8,196 | $11,759 | $3,562 less in Iowa | $189,272 | $185,709 |
Married filing jointly, 2026, federal standard deduction. Uses each state's joint brackets where they differ.
Does the lower-tax state change as income rises?
For a single filer, Iowa is the lower-tax state up to roughly $30,000 of income, and New Jersey becomes the lower-tax state above that. The order flips again near $52,500, so the better state depends on where your income falls.
Rates side by side
Iowa (single filers)
| 3.8% | Over $0 |
New Jersey (single filers)
| 1.4% | Up to $20,000 |
| 1.75% | $20,001 to $35,000 |
| 3.5% | $35,001 to $40,000 |
| 5.53% | $40,001 to $75,000 |
| 6.37% | $75,001 to $500,000 |
| 8.97% | $500,001 to $1,000,000 |
| 10.75% | Over $1,000,000 |
Full details for each state: Iowa income tax calculator and New Jersey income tax calculator. Federal rates are on the 2026 federal tax brackets page.
Iowa vs New Jersey FAQ
Which has lower income tax, Iowa or New Jersey?+
Iowa is lower at $75,000: $2,198 of state income tax versus $2,598 in New Jersey. At $150,000 it is $5,048 in Iowa and $7,367 in New Jersey. For a single filer, Iowa is the lower-tax state up to roughly $30,000 of income, and New Jersey becomes the lower-tax state above that. The order flips again near $52,500, so the better state depends on where your income falls.
How much more do I keep on $100,000 in Iowa versus New Jersey?+
A single filer keeping $76,032 a year in Iowa would keep $74,998 in New Jersey after federal, state and payroll tax. The difference is $1,034 a year, or $86 a month.
How do the Iowa and New Jersey income tax systems differ?+
Iowa uses a flat 3.8% rate; New Jersey uses progressive rates up to 10.75%. State deductions and exemptions also differ, which changes how much income is taxed.
Are local taxes included in this Iowa vs New Jersey comparison?+
No. It covers federal income tax, Social Security, Medicare and state income tax only. City, county, sales and property taxes are not included, and they can change the real cost of living in each state.
Should I move from Iowa to New Jersey to save on taxes?+
State income tax is one cost among many. Property and sales taxes, housing, insurance and wages also differ, and you may owe tax to both states in the year you move. Use this comparison as one input and confirm details with a tax professional.
Sources
- Tax Foundation: 2026 state individual income tax rates and brackets
- IRS: Tax inflation adjustments for tax year 2026
Last checked October 10, 2026. Confirm with your state tax agency before filing.
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Estimates for education only, not tax, legal or financial advice. Not a substitute for a tax professional or your state revenue department.