State comparison
Iowa vs Nebraska: which state is better to live in?
Iowa costs a median household about $1,000 a year less in state and local taxes than Nebraska, mostly because property tax on a median home runs $3,053 a year against $3,816 in Nebraska.
Iowa
Moderate tax burden · COL index 88
Wins 10 categories
Nebraska
Moderate tax burden · COL index 91
Wins 3 categories
Taxes: Iowa vs Nebraska
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. Nebraska has a graduated income tax topping out at 3.99%, which works out to 4.1% on a median income of $74,580, or $3,093 a year. Iowa wins on income tax at 2026 rates.
Property tax is 1.42% of home value a year in Iowa and 1.44% in Nebraska (Tax Foundation, 2023); on each state's median home that is $3,053 against $3,816, so Iowa has the lower rate.
Combined state and local sales tax averages 6.94% in Iowa and 6.94% in Nebraska; the two match.
Add it up for a household earning $74,580 (the 2022 national median) and owning the median home: $7,440 a year in Iowa, $8,461 in Nebraska. Iowa is cheaper on total state and local tax.
Housing and cost of living
Iowa's cost of living index is 88 and Nebraska's is 91, where 100 is the national average; Iowa is about 3% cheaper day to day.
The median home costs $215K in Iowa and $265K in Nebraska (Zillow, 2024), a $50K gap in Iowa's favor. A two-bedroom rents for about $1,050 a month in Iowa and $1,150 in Nebraska.
Home insurance averages $1,700 a year in Iowa and $2,200 in Nebraska, so Iowa is cheaper to insure.
Safety
Violent crime runs 284 incidents per 100,000 residents in Iowa and 311 in Nebraska (FBI Crime Data Explorer, 2023); Iowa is the safer state by that measure, with a rate 10% lower. Property crime is 1,626 per 100,000 in Iowa against 1,956 in Nebraska, again favoring Iowa.
Health
Life expectancy is 78 years in Iowa and 78.6 in Nebraska (County Health Rankings, 2024), a 0.6-year edge for Nebraska. The Commonwealth Fund's 2023 scorecard ranks Iowa's health system 21st of 50 and Nebraska's 26th, so Iowa scores better on care.
5.8% of Iowa residents have no health insurance against 7.1% in Nebraska, which favors Iowa. Both states expanded Medicaid.
Schools
Education Week's 2023 Quality Counts report ranks Iowa's K-12 schools 15th in the country and Nebraska's 18th, 3 places apart in Iowa's favor. Both states run school-choice voucher programs.
Laws and politics
In the 2024 presidential election Iowa went to Trump by 13 points and Nebraska went to Trump by 19 points.
Iowa has permitless carry and a Giffords gun-law grade of F; Nebraska has permitless carry and a grade of F.
Abortion is banned with narrow exceptions in Iowa and legal with limits in Nebraska, and marijuana is medical only in both as of 2026. The minimum wage is $7.25 an hour in Iowa and $12.00 in Nebraska.
Climate and risk
Natural disaster risk is high in Iowa (tornado, flood, blizzard) and high in Nebraska (tornado, blizzard, flood). Annual average air quality index is 34 in Iowa and 33 in Nebraska (under 50 is good), favoring Nebraska.
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
10
Iowa
3
Nebraska
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Score For My Profile →Questions people ask
Is Iowa or Nebraska better to live in?
Iowa wins more of the measures that decide a move. Iowa on taxes ($7,440 a year for a median household against $8,461); Iowa on everyday costs (index 88 against 91); Iowa on safety (284 violent crimes per 100,000 against 311); Iowa on schools (ranked 15th against 18th).
Which is cheaper, Iowa or Nebraska?
Iowa is cheaper day to day: cost of living index 88 against 91. The median home is $215K in Iowa and $265K in Nebraska (2024). On state and local taxes Iowa saves a median household about $1,000 a year.
Does Iowa or Nebraska have lower taxes?
Iowa. A household earning $74,580 pays about $7,440 a year in Iowa ($2,834 income tax, $3,053 property tax on the median home and $1,553 in sales tax) and $8,461 in Nebraska ($3,093 income tax, $3,816 property tax on the median home and $1,553 in sales tax), at 2026 rates.
Which is safer, Iowa or Nebraska?
Iowa, on the FBI's 2023 figures. Violent crime is 284 per 100,000 residents in Iowa and 311 in Nebraska; property crime is 1,626 against 1,956.
Which has better schools, Iowa or Nebraska?
Iowa. Education Week's 2023 Quality Counts report ranks Iowa 15th of 50 for K-12 and Nebraska 18th.
Is Iowa or Nebraska better for retirees?
Iowa is friendlier to retirees on paper. Iowa does not tax Social Security, exempts pensions and has no estate or inheritance tax; Nebraska does not tax Social Security, partly exempts pensions and has an inheritance tax. Property tax on a median home is $3,053 a year in Iowa and $3,816 in Nebraska.