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