State Comparison

Minnesota vs Iowa

Side-by-side comparison of 16 financial metrics including taxes, housing costs, cost of living, wages, and insurance — powered by verified government data.

Overall Score

7
Minnesota
MN
vs
of 16 metrics
9
Iowa
IA

Cost of Living

Cost of Living Index
MN: 96.8
IA: 90.1
IA

Housing

Median Home Price
MN: $330,000
IA: $205,000
IA
Median 2BR Rent
MN: $1,160/mo
IA: $870/mo
IA
Closing Costs
MN: 2.70%
IA: 2.80%
MN
Transfer Tax Rate
MN: 0.33%
IA: 0.16%
IA

Taxes

Property Tax Rate
MN: 1.12%
IA: 1.57%
MN
Top Income Tax Rate
MN: 9.85%
IA: 3.90%
IA
Sales Tax Rate
MN: 6.88%
IA: 6.00%
IA
Capital Gains Tax Rate
MN: 9.85%
IA: 3.90%
IA

Income & Employment

Median Household Income
MN: $77,706
IA: $65,573
MN
Minimum Wage
MN: $11.13/hr
IA: $7.25/hr
MN
Max Unemployment Benefit
MN: $740/wk
IA: $507/wk
MN

Business

LLC Filing Fee
MN: $155
IA: $50
IA
LLC Annual Fee
MN: $0
IA: $60
MN

Insurance & Living

Avg Car Insurance
MN: $1,620/yr
IA: $1,280/yr
IA
Avg Home Insurance
MN: $1,980/yr
IA: $2,020/yr
MN

Key Takeaways

  • 1

    Iowa leads in 9 of 16 financial metrics, making it the more favorable state overall.

  • 2

    Housing: Median home prices are $330,000 in Minnesota vs $205,000 in Iowa — a $125,000 difference.

  • 3

    Taxes: Minnesota has a 9.85% top income tax rate while Iowa has a 3.9% top rate. Property tax rates are 1.12% vs 1.57%.

  • 4

    Cost of Living: Minnesota's index is 96.8 and Iowa's is 90.1 (national average = 100).

Frequently Asked Questions

Is Minnesota or Iowa more affordable?

Iowa has a lower cost of living index (90.1) compared to Minnesota (96.8), where 100 is the national average. However, affordability depends on your specific situation — compare housing, taxes, and income together for a complete picture.

Which state has lower taxes — Minnesota or Iowa?

Overall, Iowa has a lower combined tax burden. Minnesota has a 9.85% top income tax, 6.875% sales tax, and 1.12% property tax. Iowa has a 3.9% top income tax, 6% sales tax, and 1.57% property tax.

What are housing costs in Minnesota vs Iowa?

The median home price in Minnesota is $330,000 compared to $205,000 in Iowa. For renters, a 2-bedroom apartment averages $1,160/month in Minnesota vs $870/month in Iowa.

Which state is better for starting a business — Minnesota or Iowa?

LLC filing costs are $155 in Minnesota vs $50 in Iowa, with annual fees of $0 and $60 respectively. Minnesota's 9.85% top tax rate compared to Iowa's 3.9% rate may also factor into your decision.

Should I move from Minnesota to Iowa?

It depends on your priorities. Iowa wins in 9 of 16 metrics we compared. Use our free calculators to model your specific financial scenario — including salary, property tax, and cost of living for each state.

Comparing Minnesota and Iowa

When deciding between living in Minnesota or Iowa, the financial picture goes beyond just one metric. This comparison analyzes 16 key financial indicators sourced from the U.S. Census Bureau, Tax Foundation, HUD Fair Market Rent data, and Bureau of Labor Statistics to give you a comprehensive overview.

Minnesota (MN) has a median household income of $77,706 with a cost of living index of 96.8. Iowa (IA) has a median household income of $65,573 with a cost of living index of 90.1.

These numbers are estimates. Individual circumstances vary based on location within each state, family size, profession, and lifestyle. Use our free Minnesota calculator or Iowa calculator to model your specific financial scenario.

Data sources: Census Bureau ACS, Tax Foundation, HUD FMR, BLS. Last verified January 2026. Calculators provide estimates only — consult a qualified professional for financial advice.