Iowa vs North Carolina Taxes: Take-Home Pay Compared (2026)
On a $75,000 salary, a single filer keeps $755 more a year in Iowa than in North Carolina ($63 a month).
Iowa
3.8% flat state income tax
$59,354
take-home on $75,000 · $4,946/month
15th of 51 states for take-home pay
Iowa paycheck calculator ›North Carolina
3.99% flat state income tax
$58,600
take-home on $75,000 · $4,883/month
34th of 51 states for take-home pay
North Carolina paycheck calculator ›Take-home pay in Iowa and North Carolina by salary
| Salary | Iowa | North Carolina | Difference |
|---|---|---|---|
| $40,000 | $33,412 | $32,724 | $688 more in Iowa |
| $50,000 | $41,067 | $40,360 | $707 more in Iowa |
| $60,000 | $48,722 | $47,996 | $726 more in Iowa |
| $75,000 | $59,354 | $58,600 | $755 more in Iowa |
| $100,000 | $75,992 | $75,190 | $802 more in Iowa |
| $125,000 | $92,566 | $91,716 | $850 more in Iowa |
| $150,000 | $108,703 | $107,806 | $897 more in Iowa |
| $200,000 | $141,939 | $140,947 | $992 more in Iowa |
Single filer, standard deduction, no local tax. To match $75,000 in Iowa you would need about $76,150 in North Carolina; to match $75,000 in North Carolina you would need about $73,850 in Iowa.
How Iowa and North Carolina tax wages
| 2026 | Iowa | North Carolina |
|---|---|---|
| Income tax | a flat 3.8% income tax | a flat 3.99% income tax |
| Top rate | 3.8% | 3.99% |
| Standard deduction | $16,100 single | $12,750 single |
| State tax on $75k | $2,238 (3.0%) | $2,993 (4.0%) |
| Local wage taxes | Yes (3 modeled) | No |
| Reciprocity | Illinois | None |
| 2026 change | No rate change | North Carolina finished its phasedown, cutting the flat rate from 4.25% to 3.99% for 2026. |
Iowa vs North Carolina: FAQ
Does Iowa or North Carolina have lower income taxes in 2026?
On a $75,000 salary, a single filer keeps $755 more a year in Iowa than in North Carolina ($63 a month). Iowa has a flat 3.8% income tax for 2026. North Carolina has a flat 3.99% income tax for 2026.
What salary in North Carolina equals $75,000 in Iowa?
To take home the same $59,354 that $75,000 leaves in Iowa, you would need about $76,150 in North Carolina, based on income, payroll, and state taxes only. Housing and other living costs are not included.
How much more do high earners keep in Iowa than in North Carolina?
At $150,000 the gap is $897 a year: $108,703 in Iowa versus $107,806 in North Carolina. With flat or no state tax, the gap grows roughly in line with salary.
What if I live in Iowa and work in North Carolina?
Iowa and North Carolina do not have a reciprocity agreement, so North Carolina withholds tax on wages earned there and Iowa generally gives residents a credit for tax paid to the other state. You effectively pay the higher of the two rates.
Do local taxes change the Iowa vs North Carolina comparison?
Iowa has local wage taxes in places like Des Moines (School district surtax), Cedar Rapids (School district surtax), Davenport (School district surtax). Those are on top of the statewide figures above, so check the city calculators if you live or work in one of them.