Compare taxes and see how much you save moving from Iowa to Missouri
Iowa’s 3.8% flat rate beats Missouri’s 4.8% top rate for most earners, saving $664/year on $100,000 income. Iowa’s biggest advantage is its complete retirement income exemption introduced in 2023 — pensions, Social Security, and 401(k) withdrawals are all tax-free. Missouri partially exempts Social Security (under $85,000 single), but Iowa’s blanket exemption makes it the clear winner for retirees. Iowa’s property tax (1.57%) is notably higher than Missouri’s (0.93%), which may offset income tax savings for homeowners.
Flat Rate
Flat 3.8% since 2025, down from 8.53% top rate in 2022
Near-Flat Rate
Top rate 4.8% applies above $9,072 — effectively flat for most earners
At $100,000 income:
That is $55/month back in your pocket!
| Income | IA Tax | MO Tax | Savings | 10-Year |
|---|---|---|---|---|
| $50,000 | $1,900 | $2,064 | $164 | $1,640 |
| $75,000 | $2,850 | $3,264 | $414 | $4,140 |
| $100,000 | $3,800 | $4,464 | $664 | $6,640 |
| $150,000 | $5,700 | $6,864 | $1,164 | $11,640 |
| $250,000 | $9,500 | $11,664 | $2,164 | $21,640 |
| $500,000 | $19,000 | $23,664 | $4,664 | $46,640 |
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Talk to a CPA About Your State Move →Yes, Iowa is clearly better for retirees. Since 2023, Iowa exempts all retirement income — Social Security, pensions, annuities, and 401(k)/IRA withdrawals are completely tax-free. Missouri only partially exempts Social Security (for those earning under $85k single or $100k married), and fully taxes pension and 401(k) income. A retiree with $80,000 in pension and SS income pays $0 in Iowa and up to $3,840 in Missouri.
Iowa’s property tax rate (1.57%) is significantly higher than Missouri’s (0.93%). On a $300,000 home, Iowa costs $4,710/year vs Missouri $2,790/year — a $1,920 annual difference. On a $400,000 home, the gap is $2,560/year. For workers saving $664 on income tax, Iowa’s property tax disadvantage more than wipes out the income savings unless you rent or own a modest home.
Iowa had one of the highest state income tax rates in the US. In 2022, the top rate was 8.53% on income above $78,435. The state passed major tax reform in 2022, phasing rates down to a single flat rate. By 2025, Iowa reached 3.8% flat, and the rate is scheduled to potentially fall further. This makes Iowa’s trajectory one of the most dramatic tax reform stories among US states in recent years.
Iowa wins for high earners on income tax alone. At $250,000, Iowa costs $9,500 vs Missouri $11,664 — a $2,164 annual saving. At $500,000, Iowa saves $4,664/year. However, high earners who own expensive property may find Missouri’s lower property tax (0.93% vs 1.57%) partially or fully offsets this. The net winner depends on your home value, but Iowa’s flat rate provides more certainty as income scales.