Quick answer
Iowa has lower average 1BR rent ($1,150/mo vs $1,238/mo). State income tax: Tennessee (None) vs Iowa (4.82%) — on a $120K salary that's $5,760/year difference.
State Comparison · 2026
Iowa vs Tennessee
Side-by-side on state income tax, rent, home prices, climate, and top metros — with specific dollar numbers for every claim.
Last updated: April 23, 2026
Iowa vs Tennessee at a Glance
| Metric | Iowa | Tennessee |
|---|---|---|
| Avg 1BR rent (major metros) | $1,150 ✓ | $1,238 |
| Avg median home price | $245K ✓ | $304K |
| Cheapest city | Des Moines ($1,150) | Memphis ($980) ✓ |
| Priciest city | Des Moines ($1,150) | Nashville ($1,520) |
| State income tax | 4.82% | None ✓ |
| Avg walkability | 45/100 ✓ | 35/100 |
| Cities tracked | 1 | 4 |
✓ marks the lower or more favorable value. Averages use the major metros we track in each state.
State Income Tax: Real Savings
What the rate gap actually looks like in your paycheck. Lower rate: Tennessee (None).
Salary $80K
$3,840
/year saved in Tennessee
Salary $120K
$5,760
/year saved in Tennessee
Salary $200K
$9,600
/year saved in Tennessee
Calculation uses the effective state rate difference × gross salary. Doesn't include property tax, sales tax, or federal impact.
Deep Dive: Each State
Iowa (IA)
Tax reality
Flat income tax of 4.82% (being phased down toward 4.0% by 2026). Property tax averages 1.57% but varies widely by county (some rural counties near 2.0%). Effective tax rate on $200k income is ~$12,500 annually—among lowest in Midwest.
Top cities (1 tracked)
Top drawbacks
- ✕Winters are brutal: -20°F wind chills common, snow removal costs $1,000+/year, ice storm damage frequent.
- ✕Severe thunderstorms and tornadoes (spring/early summer). 2020 Derecho caused $11B+ in damage—most expensive natural disaster in state history.
- ✕Rural depopulation: 2010–2020 lost 30+ counties to population decline. Main streets in rural towns are shuttered.
Tennessee (TN)
Tax reality
Tennessee has no state income tax on W-2 wages or investment income. Sales tax is 7% state + local, totaling 9.25-9.75% in most metros — one of the highest sales tax rates in the US. No estate tax. Property tax is low (~0.7% effective in Nashville, lower in rural areas).
Top cities (4 tracked)
Top drawbacks
- ✕Sales tax 9.25%+ is punishing. Every purchase stings — gas, groceries (yes, groceries are taxed here), and retail.
- ✕Nashville traffic has become very bad as the metro has grown. I-24 and I-65 corridor are regularly backed up; the state has underinvested in transit.
- ✕Summers are humid subtropical — regular 90°F + 75% humidity from June through September, and thunderstorm season can be intense.
Frequently Asked Questions
Is Iowa or Tennessee cheaper to live in?
Iowa has lower average 1BR rent across major metros — $1,150/mo vs $1,238/mo in Tennessee, a $88/mo difference. Home prices: Iowa median is $245K vs $304K.
Iowa vs Tennessee: which has lower state income tax?
Tennessee has lower state income tax (None) vs 4.82% in Iowa. On an $80K salary that's $3,840/year in savings. On $200K, savings grow to $9,600/year.
Should I move from Iowa to Tennessee?
Flat income tax of 4.82% (being phased down toward 4.0% by 2026). Property tax averages 1.57% but varies widely by county (some rural counties near 2.0%). Effective tax rate on $200k income is ~$12,500 annually—among lowest in Midwest.
What are the best cities in Iowa vs Tennessee?
Iowa's largest metros include Des Moines. Tennessee's largest metros include Nashville, Memphis, Chattanooga. Cost of living varies significantly within each state — a Iowa suburb can be 40% cheaper than its flagship city, and vice versa.