State comparison
Iowa vs New Mexico: which state is better to live in?
New Mexico costs a median household about $760 a year less in state and local taxes than Iowa, mostly because property tax on a median home runs $1,815 a year against $3,053 in Iowa, though everyday prices run higher there (cost of living index 91 against 88).
Iowa
Moderate tax burden · COL index 88
Wins 10 categories
New Mexico
Moderate tax burden · COL index 91
Wins 4 categories
Taxes: Iowa vs New Mexico
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 Mexico has a graduated income tax topping out at 5.9%, which works out to 4.2% on a median income of $74,580, or $3,112 a year. Iowa wins on income tax at 2026 rates.
Property tax is 1.42% of home value a year in Iowa and 0.55% in New Mexico (Tax Foundation, 2023); on each state's median home that is $3,053 against $1,815, so New Mexico has the lower rate.
Combined state and local sales tax averages 6.94% in Iowa and 7.82% in New Mexico; Iowa 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, $6,677 in New Mexico. New Mexico is cheaper on total state and local tax.
Housing and cost of living
Iowa's cost of living index is 88 and New Mexico'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 $330K in New Mexico (Zillow, 2024), a $115K gap in Iowa's favor. A two-bedroom rents for about $1,050 a month in Iowa and $1,250 in New Mexico.
Home insurance averages $1,700 a year in Iowa and $1,600 in New Mexico, so New Mexico is cheaper to insure.
Safety
Violent crime runs 284 incidents per 100,000 residents in Iowa and 778 in New Mexico (FBI Crime Data Explorer, 2023); Iowa is the safer state by that measure, with a rate 174% lower. Property crime is 1,626 per 100,000 in Iowa against 3,286 in New Mexico, again favoring Iowa.
Health
Life expectancy is 78 years in Iowa and 74.1 in New Mexico (County Health Rankings, 2024), a 3.9-year edge for Iowa. The Commonwealth Fund's 2023 scorecard ranks Iowa's health system 21st of 50 and New Mexico's 49th, so Iowa scores better on care.
5.8% of Iowa residents have no health insurance against 9.2% in New Mexico, 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 Mexico's 46th, 31 places apart in Iowa's favor. Iowa runs a school-choice voucher program; New Mexico does not.
Laws and politics
In the 2024 presidential election Iowa went to Trump by 13 points and New Mexico went to Harris by 10 points.
Iowa has permitless carry and a Giffords gun-law grade of F; New Mexico has shall-issue carry permits and a grade of B-, so New Mexico 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 Mexico, and marijuana is medical only in Iowa and legal for adults in New Mexico as of 2026. The minimum wage is $7.25 an hour in Iowa and $12.00 in New Mexico.
Climate and risk
Natural disaster risk is high in Iowa (tornado, flood, blizzard) and high in New Mexico (wildfire, drought, flash-flood). Annual average air quality index is 34 in Iowa and 44 in New Mexico (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
10
Iowa
4
New Mexico
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Score For My Profile →Questions people ask
Is Iowa or New Mexico better to live in?
Iowa wins more of the measures that decide a move. New Mexico on taxes ($6,677 a year for a median household against $7,440); Iowa on everyday costs (index 88 against 91); Iowa on safety (284 violent crimes per 100,000 against 778); Iowa on schools (ranked 15th against 46th).
Which is cheaper, Iowa or New Mexico?
Iowa is cheaper day to day: cost of living index 88 against 91. The median home is $215K in Iowa and $330K in New Mexico (2024). On state and local taxes New Mexico saves a median household about $760 a year.
Does Iowa or New Mexico have lower taxes?
New Mexico. 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 $6,677 in New Mexico ($3,112 income tax, $1,815 property tax on the median home and $1,750 in sales tax), at 2026 rates.
Which is safer, Iowa or New Mexico?
Iowa, on the FBI's 2023 figures. Violent crime is 284 per 100,000 residents in Iowa and 778 in New Mexico; property crime is 1,626 against 3,286.
Which has better schools, Iowa or New Mexico?
Iowa. Education Week's 2023 Quality Counts report ranks Iowa 15th of 50 for K-12 and New Mexico 46th. Iowa also offers school-choice vouchers.
Is Iowa or New Mexico 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 Mexico does not tax Social Security, partly exempts pensions and has no estate or inheritance tax. Property tax on a median home is $3,053 a year in Iowa and $1,815 in New Mexico.