Iowa Has 43rd Highest Tax Rate

DES MOINES, Iowa - Iowa has the 43rd highest tax rate in the country.

The rankings by WalletHub measured taxes for income, real estate and vehicles, along with sales and excise taxes in each state.

Iowa's effective state and local tax burden is more than 21 percent higher than the national average. The state ranks 37th for income tax, 38th for real estate tax, 29th for vehicle property tax and 29th for sales and excise tax.

The analysis found that low income tax state don't necessarily have low overall tax burdens.

According to the WalletHub analysis, Washington resident, who pay no state income tax , still spend 8% of their annual income on sales and excise taxes. Texas residents also don’t pay income tax, but spend 1.81% of their income on real estate taxes, one of the highest rates in the country.

Meanwhile in California, where residents owe almost 5% of their income in sales and excise taxes, and just 0.76% in real estate tax.

Iowa's neighboring state of Illinois has the highest state and local tax rate in the country, while Alaska has the lowest.

Here's how other state adjacent to Iowa rank in the WalletHub analysis: South Dakota - 27th, Missouri - 28th, Minnesota - 29th, Wisconsin - 45th, Nebraska -46th


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