State comparison
Indiana vs Iowa: which state is better to live in?
Indiana costs a median household about $2,000 a year less in state and local taxes than Iowa, mostly because property tax on a median home runs $1,704 a year against $3,053 in Iowa.
Indiana
Moderate tax burden · COL index 87
Wins 4 categories
Iowa
Moderate tax burden · COL index 88
Wins 8 categories
Taxes: Indiana vs Iowa
Indiana has a flat 3.05% income tax, which works out to 3.0% on a median income of $74,580, or $2,200 a year. Iowa has a flat 3.8% income tax, which works out to 3.8% on a median income of $74,580, or $2,834 a year. Indiana wins on income tax at 2026 rates.
Property tax is 0.71% of home value a year in Indiana and 1.42% in Iowa (Tax Foundation, 2023); on each state's median home that is $1,704 against $3,053, so Indiana has the lower rate.
Combined state and local sales tax averages 7.00% in Indiana and 6.94% in Iowa; Iowa is lower.
Add it up for a household earning $74,580 (the 2022 national median) and owning the median home: $5,470 a year in Indiana, $7,440 in Iowa. Indiana is cheaper on total state and local tax.
Housing and cost of living
Indiana's cost of living index is 87 and Iowa's is 88, where 100 is the national average; Indiana is about 1% cheaper day to day.
The median home costs $240K in Indiana and $215K in Iowa (Zillow, 2024), a $25K gap in Iowa's favor. A two-bedroom rents for about $1,100 a month in Indiana and $1,050 in Iowa.
Home insurance averages $1,500 a year in Indiana and $1,700 in Iowa, so Indiana is cheaper to insure.
Safety
Violent crime runs 396 incidents per 100,000 residents in Indiana and 284 in Iowa (FBI Crime Data Explorer, 2023); Iowa is the safer state by that measure, with a rate 39% lower. Property crime is 1,767 per 100,000 in Indiana against 1,626 in Iowa, again favoring Iowa.
Health
Life expectancy is 75.5 years in Indiana and 78 in Iowa (County Health Rankings, 2024), a 2.5-year edge for Iowa. The Commonwealth Fund's 2023 scorecard ranks Indiana's health system 42nd of 50 and Iowa's 21st, so Iowa scores better on care.
8.9% of Indiana residents have no health insurance against 5.8% in Iowa, which favors Iowa. Both states expanded Medicaid.
Schools
Education Week's 2023 Quality Counts report ranks Indiana's K-12 schools 27th in the country and Iowa's 15th, 12 places apart in Iowa's favor. Both states run school-choice voucher programs.
Laws and politics
In the 2024 presidential election Indiana went to Trump by 19 points and Iowa went to Trump by 13 points.
Indiana has permitless carry and a Giffords gun-law grade of F; Iowa has permitless carry and a grade of F.
Abortion is banned with narrow exceptions in both states, and marijuana is illegal in Indiana and medical only in Iowa as of 2026. The minimum wage is $7.25 an hour in Indiana and $7.25 in Iowa.
Climate and risk
Natural disaster risk is moderate in Indiana (tornado, flood) and high in Iowa (tornado, flood, blizzard), so Indiana is the lower-risk state. Annual average air quality index is 48 in Indiana and 34 in Iowa (under 50 is good), favoring Iowa.
Tax figures use a household earning the national median income and owning each state's median home, at tax year 2026 rates, last checked against state sources on 2026-09-14. The table below has every number.
Taxes
Housing & Cost of Living
Crime & Safety
Healthcare
Education
Childcare
Utilities & Daily Costs
Social Policy
Category wins
4
Indiana
8
Iowa
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Score For My Profile →Questions people ask
Is Indiana or Iowa better to live in?
It depends on what you weigh most. Indiana on taxes ($5,470 a year for a median household against $7,440); Indiana on everyday costs (index 87 against 88); Iowa on safety (284 violent crimes per 100,000 against 396); Iowa on schools (ranked 15th against 27th).
Which is cheaper, Indiana or Iowa?
Indiana is cheaper day to day: cost of living index 87 against 88. The median home is $240K in Indiana and $215K in Iowa (2024). On state and local taxes Indiana saves a median household about $2,000 a year.
Does Indiana or Iowa have lower taxes?
Indiana. A household earning $74,580 pays about $5,470 a year in Indiana ($2,200 income tax, $1,704 property tax on the median home and $1,566 in sales tax) and $7,440 in Iowa ($2,834 income tax, $3,053 property tax on the median home and $1,553 in sales tax), at 2026 rates.
Which is safer, Indiana or Iowa?
Iowa, on the FBI's 2023 figures. Violent crime is 396 per 100,000 residents in Indiana and 284 in Iowa; property crime is 1,767 against 1,626.
Which has better schools, Indiana or Iowa?
Iowa. Education Week's 2023 Quality Counts report ranks Indiana 27th of 50 for K-12 and Iowa 15th.
Is Indiana or Iowa better for retirees?
Iowa is friendlier to retirees on paper. Indiana does not tax Social Security, partly exempts pensions and has no estate or inheritance tax; Iowa does not tax Social Security, exempts pensions and has no estate or inheritance tax. Property tax on a median home is $1,704 a year in Indiana and $3,053 in Iowa.