State comparison
New Mexico vs Iowa: 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).
New Mexico
Moderate tax burden · COL index 91
Wins 4 categories
Iowa
Moderate tax burden · COL index 88
Wins 10 categories
Taxes: New Mexico vs Iowa
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 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. Iowa wins on income tax at 2026 rates.
Property tax is 0.55% of home value a year in New Mexico and 1.42% in Iowa (Tax Foundation, 2023); on each state's median home that is $1,815 against $3,053, so New Mexico has the lower rate.
Combined state and local sales tax averages 7.82% in New Mexico 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: $6,677 a year in New Mexico, $7,440 in Iowa. New Mexico is cheaper on total state and local tax.
Housing and cost of living
New Mexico's cost of living index is 91 and Iowa's is 88, where 100 is the national average; Iowa is about 3% cheaper day to day.
The median home costs $330K in New Mexico and $215K in Iowa (Zillow, 2024), a $115K gap in Iowa's favor. A two-bedroom rents for about $1,250 a month in New Mexico and $1,050 in Iowa.
Home insurance averages $1,600 a year in New Mexico and $1,700 in Iowa, so New Mexico is cheaper to insure.
Safety
Violent crime runs 778 incidents per 100,000 residents in New Mexico and 284 in Iowa (FBI Crime Data Explorer, 2023); Iowa is the safer state by that measure, with a rate 174% lower. Property crime is 3,286 per 100,000 in New Mexico against 1,626 in Iowa, again favoring Iowa.
Health
Life expectancy is 74.1 years in New Mexico and 78 in Iowa (County Health Rankings, 2024), a 3.9-year edge for Iowa. The Commonwealth Fund's 2023 scorecard ranks New Mexico's health system 49th of 50 and Iowa's 21st, so Iowa scores better on care.
9.2% of New Mexico 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 Mexico's K-12 schools 46th in the country and Iowa's 15th, 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 New Mexico went to Harris by 10 points and Iowa went to Trump by 13 points.
New Mexico has shall-issue carry permits and a Giffords gun-law grade of B-; Iowa has permitless carry and a grade of F, so New Mexico regulates guns more tightly and Iowa is the friendlier state for gun owners.
Abortion is protected by state law in New Mexico and banned with narrow exceptions in Iowa, and marijuana is legal for adults in New Mexico and medical only in Iowa as of 2026. The minimum wage is $12.00 an hour in New Mexico and $7.25 in Iowa.
Climate and risk
Natural disaster risk is high in New Mexico (wildfire, drought, flash-flood) and high in Iowa (tornado, flood, blizzard). Annual average air quality index is 44 in New Mexico 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
New Mexico
10
Iowa
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Score For My Profile →Questions people ask
Is New Mexico or Iowa 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, New Mexico or Iowa?
Iowa is cheaper day to day: cost of living index 88 against 91. The median home is $330K in New Mexico and $215K in Iowa (2024). On state and local taxes New Mexico saves a median household about $760 a year.
Does New Mexico or Iowa have lower taxes?
New Mexico. A household earning $74,580 pays about $6,677 a year in New Mexico ($3,112 income tax, $1,815 property tax on the median home and $1,750 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 Mexico or Iowa?
Iowa, on the FBI's 2023 figures. Violent crime is 778 per 100,000 residents in New Mexico and 284 in Iowa; property crime is 3,286 against 1,626.
Which has better schools, New Mexico or Iowa?
Iowa. Education Week's 2023 Quality Counts report ranks New Mexico 46th of 50 for K-12 and Iowa 15th. Iowa also offers school-choice vouchers.
Is New Mexico or Iowa better for retirees?
Iowa is friendlier to retirees on paper. New Mexico 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 $1,815 a year in New Mexico and $3,053 in Iowa.