Side-by-side comparison of income tax, property tax, sales tax, capital gains, and retirement treatment between Alabama and Iowa for tax year 2026. Use the calculator below to estimate how much you would save (or pay) after relocating.
| Tax | Alabama | Iowa |
|---|---|---|
| State income tax (effective) | 4.50% | 4.38% |
| Long-term capital gains | 5.00% | 4.38% |
| Property tax (effective) | 0.40% | 1.57% |
| Combined sales tax | 9.25% | 6.94% |
| Retirement income | ss-exempt | ss-exempt |
| Income system | progressive | flat |
Alabama total tax
$19,846
Iowa total tax
$19,702
Alabama state tax
$4,476
Iowa state tax
$4,332
Difference
−$144
Iowa saves you money
As % of income
0.12%
Federal tax is identical in both columns and excluded from the difference. Numbers use 2026 IRS brackets, state effective rates, and the 3.8% NIIT where applicable.
Moving from Alabama to Iowa could save about $144 per year on this profile — roughly 0.12% of gross income.
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