Tax Comparison: Madison, WI vs Iowa city, IA
Understanding Your Tax Burden
This page compares the three main types of taxes between Madison, WI and Iowa city, IA: property tax, income tax, and sales tax. Each of these has a different impact on your overall cost of living.
Property Tax Comparison
Property taxes are collected by local governments and used to fund schools, infrastructure, and other local services. They're typically based on the assessed value of your property.
Our property tax estimates are based on:
- U.S. median home value: $419,200 (2023 data)
- Local effective tax rates for both cities
Madison, WI
$7,186
Based on a $419,200 home
Rate: 1.7143%
Iowa city, IA
$6,560
Based on a $419,200 home
Rate: 1.5650%
| Data | Madison, WI | Iowa city, IA |
|---|---|---|
| Effective Property Tax Rate | 1.7143% | 1.5650% |
| Estimated Property Tax | $7,186 | $6,560 |
| Home Value Used | $419,200 | $419,200 |
Comparison: Property taxes in Iowa city, IA are $626 lower than in Madison, WI for the same home value.
State Income Tax Comparison
Income tax rates and brackets vary by state, impacting residents' overall tax burden. The estimates below are based on standard deductions and typical filing scenarios.
Our income tax estimates consider:
- Single filer: $100,000 annual income
- Married couple: $200,000 combined income
- Median income: $80,600 annual income
WI
3.5%-7.65%
Single: $5,393
Married: $9,707
IA
4.4%-5.7%
Single: $3,800
Married: $6,840
| Data | WI | IA |
|---|---|---|
| Tax Rate | 3.5%-7.65% | 4.4%-5.7% |
| Single Filer ($100k) | $5,393 | $3,800 |
| Married Couple ($200k) | $9,707 | $6,840 |
| Median Income ($80.6k) | $4,271 | $3,061 |
Comparison: Income taxes in IA are $1,210 lower than in WI for the median household income.
Sales Tax Comparison
Sales tax rates vary by location and can have a significant impact on your day-to-day expenses. These include state, county, city, and special district taxes that together form the total sales tax rate.
Our sales tax estimates consider:
- Average household taxable spending: $15,500 per year
- Combined state and local rates for both cities
Madison, WI
7.900%
Combined rate
Annual sales tax: $1224
(Based on $15,500 spending)
Iowa city, IA
8.000%
Combined rate
Annual sales tax: $1240
(Based on $15,500 spending)
| Data | Madison, WI | Iowa city, IA |
|---|---|---|
| State Sales Tax | 5.00% | 6.00% |
| Combined Sales Tax | 7.900% | 8.000% |
| Annual Tax Amount | $1,224 | $1,240 |
Comparison: Shopping in Madison, WI costs $16 less in annual sales tax than in Iowa city, IA for the average household.
Tax Comparison Insights
Tax Insights: Madison vs Iowa city
- Property Tax: Iowa city has a 0.1493 percentage points lower effective property tax rate than Madison.
- Income Tax: Living in IA could save you approximately $1,210 in state income taxes for a median household income.
- Sales Tax: The combined sales tax rate in Madison is 0.10 percentage points lower than in Iowa city.
Overall Tax Burden Comparison
Madison, WI
$12,681
Combined annual tax burden
Property
$7,186
Income
$4,271
Sales
$1,224
Iowa city, IA
$10,861
Combined annual tax burden
Property
$6,560
Income
$3,061
Sales
$1,240
Overall Comparison: Iowa city, IA has an estimated $1,820 lower total tax burden than Madison, WI based on our standard scenarios.
Important Tax Disclaimer
The tax information provided above is based on publicly available data and standard assumptions. Actual tax situations will vary based on:
- Individual financial circumstances
- Applicable deductions and credits
- Recent changes in tax laws
- Personal spending habits
- Local variations within cities and counties
This comparison is intended for general informational purposes only and should not be considered tax advice. For specific guidance regarding your tax situation, please consult with a qualified tax professional.