State comparison
Iowa vs New Jersey: which state is better to live in?
Iowa costs a median household about $7,300 a year less in state and local taxes than New Jersey, mostly because property tax on a median home runs $3,053 a year against $10,650 in New Jersey.
Iowa
Moderate tax burden · COL index 88
Wins 8 categories
New Jersey
High tax burden · COL index 121
Wins 6 categories
Taxes: Iowa vs New Jersey
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. New Jersey has a graduated income tax topping out at 10.75%, which works out to 3.5% on a median income of $74,580, or $2,628 a year. New Jersey wins on income tax at 2026 rates.
Property tax is 1.42% of home value a year in Iowa and 2.13% in New Jersey (Tax Foundation, 2023); on each state's median home that is $3,053 against $10,650, so Iowa has the lower rate.
Combined state and local sales tax averages 6.94% in Iowa and 6.60% in New Jersey; New Jersey is lower.
Add it up for a household earning $74,580 (the 2022 national median) and owning the median home: $7,440 a year in Iowa, $14,755 in New Jersey. Iowa is cheaper on total state and local tax.
Housing and cost of living
Iowa's cost of living index is 88 and New Jersey's is 121, where 100 is the national average; Iowa is about 38% cheaper day to day.
The median home costs $215K in Iowa and $500K in New Jersey (Zillow, 2024), a $285K gap in Iowa's favor. A two-bedroom rents for about $1,050 a month in Iowa and $2,200 in New Jersey.
Home insurance averages $1,700 a year in Iowa and $1,400 in New Jersey, so New Jersey is cheaper to insure.
Safety
Violent crime runs 284 incidents per 100,000 residents in Iowa and 213 in New Jersey (FBI Crime Data Explorer, 2023); New Jersey is the safer state by that measure, with a rate 33% lower. Property crime is 1,626 per 100,000 in Iowa against 1,368 in New Jersey, again favoring New Jersey.
Health
Life expectancy is 78 years in Iowa and 79 in New Jersey (County Health Rankings, 2024), a 1.0-year edge for New Jersey. The Commonwealth Fund's 2023 scorecard ranks Iowa's health system 21st of 50 and New Jersey's 19th, so New Jersey scores better on care.
5.8% of Iowa residents have no health insurance against 6.8% in New Jersey, 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 New Jersey's 2nd, 13 places apart in New Jersey's favor. Iowa runs a school-choice voucher program; New Jersey does not.
Laws and politics
In the 2024 presidential election Iowa went to Trump by 13 points and New Jersey went to Harris by 6 points.
Iowa has permitless carry and a Giffords gun-law grade of F; New Jersey has may-issue carry permits and a grade of A, so New Jersey regulates guns more tightly and Iowa is the friendlier state for gun owners.
Abortion is banned with narrow exceptions in Iowa and protected by state law in New Jersey, and marijuana is medical only in Iowa and legal for adults in New Jersey as of 2026. The minimum wage is $7.25 an hour in Iowa and $15.13 in New Jersey.
Climate and risk
Natural disaster risk is high in Iowa (tornado, flood, blizzard) and moderate in New Jersey (hurricane, flood, nor-easter), so New Jersey is the lower-risk state. Annual average air quality index is 34 in Iowa and 35 in New Jersey (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
8
Iowa
6
New Jersey
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Score For My Profile →Questions people ask
Is Iowa or New Jersey better to live in?
It depends on what you weigh most. Iowa on taxes ($7,440 a year for a median household against $14,755); Iowa on everyday costs (index 88 against 121); New Jersey on safety (213 violent crimes per 100,000 against 284); New Jersey on schools (ranked 2nd against 15th).
Which is cheaper, Iowa or New Jersey?
Iowa is cheaper day to day: cost of living index 88 against 121. The median home is $215K in Iowa and $500K in New Jersey (2024). On state and local taxes Iowa saves a median household about $7,300 a year.
Does Iowa or New Jersey 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 $14,755 in New Jersey ($2,628 income tax, $10,650 property tax on the median home and $1,477 in sales tax), at 2026 rates.
Which is safer, Iowa or New Jersey?
New Jersey, on the FBI's 2023 figures. Violent crime is 284 per 100,000 residents in Iowa and 213 in New Jersey; property crime is 1,626 against 1,368.
Which has better schools, Iowa or New Jersey?
New Jersey. Education Week's 2023 Quality Counts report ranks Iowa 15th of 50 for K-12 and New Jersey 2nd. Iowa also offers school-choice vouchers.
Is Iowa or New Jersey 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; New Jersey 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 $10,650 in New Jersey.