Compare taxes and see how much you save moving from Iowa to Texas
Iowa has progressive income tax rates from 4.4% to 5.7%, while Texas has no state income tax (0%). Moving from Iowa to Texas saves $5,400/year on $100k income. However, Texas has higher property taxes (1.74% vs IA's 1.50%) and higher sales tax (8.20% vs 6.94%). Overall, Texas offers tax savings for high earners and renters, while Iowa is competitive for homeowners with expensive properties. Both states see migration driven by job opportunities and housing affordability.
Progressive
4 brackets, up to 5.7%
No Income Tax
Constitutional prohibition
At $100,000 income:
That is $450/month back in your pocket!
| Income | IA Tax | TX Tax | Savings | 10-Year |
|---|---|---|---|---|
| $50,000 | $2,400 | $0 | $2,400 | $24,000 |
| $100,000 | $5,400 | $0 | $5,400 | $54,000 |
| $200,000 | $11,100 | $0 | $11,100 | $111,000 |
| $500,000 | $28,500 | $0 | $28,500 | $285,000 |
CountryTaxCalc.com is reader-supported. When you use our partner links, we may earn a commission at no cost to you. This helps us provide free tax calculators and comparison tools. Learn more about our affiliate partnerships
★ 4.8 verified reviews · 3,758 reviews
Moving from Iowa to Texas? Multi-state returns are tricky—partial-year residency, different deadlines. Get matched with a CPA who specializes in state moves.
⚠ Not for simple single-state returns. Free filing is fine for straightforward W-2 situations.
Get Matched With a CPA →On $100,000 income, Texas saves $5,400/year (IA 5.4% effective vs TX 0%). Over 10 years: $54,000. On $500,000 income: $28,500/year ($285,000 over 10 years). However, TX property tax is higher (1.74% vs IA 1.50%). On a $600k home, TX pays $10,440/year vs IA $9,000/year—difference of $1,440/year. For homeowners, this reduces net tax savings to $3,960/year.
Texas has 3rd highest property tax in US (1.74%) because with zero income tax, TX must fund all services through property/sales taxes. School districts alone levy 1.0-1.5%. Cities, counties, and special districts add more layers. This 'hidden taxation' replaces income tax most states charge. Iowa funds services through income tax (4.4-5.7%), reducing property tax reliance.
Yes. In 2023, 4,872 people moved IA → TX (vs 2,134 TX → IA), net gain of 2,738 for Texas. Migration drivers IA → TX: no income tax (save $5,400+ annually), job opportunities (Austin/Dallas booming), warmer weather. Migration drivers TX → IA: four seasons, better schools, family ties, lower housing costs (Des Moines 15% cheaper than Dallas).
Texas wins for retirees: zero income tax on all retirement income (Social Security, pensions, 401k withdrawals), no estate tax. Iowa taxes retirement income at 4.4-5.7% (though Social Security is exempt). However, Iowa has lower property tax (1.50% vs TX 1.74%). Choose TX for tax savings on retirement withdrawals. Choose IA for four seasons, lower property tax, proximity to family in Midwest.