Iowa Salaries 2025
Insurance powerhouse with exceptional Midwest value
Median Household Income
Iowa Salary Overview 2025
Iowa consistently ranks among America's most livable states, combining solid wages with rock-bottom cost of living and genuine community values. The state's median household income of $66,000 approaches the national median, but Iowa's cost of living (88 index, 12% below average) creates purchasing power that rivals much higher salaries elsewhere.
Des Moines has emerged as a financial services hub—"The Hartford of the West"—home to Principal Financial Group, Wellmark Blue Cross Blue Shield, and major operations for other insurers. The city punches above its weight with a growing tech scene, vibrant downtown, and quality of life that attracts young professionals.
Iowa's recent tax reform reduced the income tax to a flat 3.8%, making it among the most tax-friendly states with an income tax. Agriculture remains foundational, but advanced manufacturing, healthcare, and education diversify the economy. For comprehensive salary data, see salary trends 2025.
Iowa Salary Snapshot
| Metric | Iowa | National Average |
|---|---|---|
| Median Household Income | $66,000 | $74,580 |
| Mean Household Income | $83,500 | $97,300 |
| Per Capita Income | $35,000 | $37,638 |
| Minimum Wage (2025) | $7.25/hr (federal) | $7.25/hr (federal) |
| Cost of Living Index | 88 (12% below avg) | 100 |
| State Income Tax | 3.8% flat | Varies |
Salaries by Iowa Region
Des Moines Metro – Economic Engine
Median Household Income: $75,000
Des Moines drives Iowa's economy with financial services, healthcare, and a growing tech sector. Principal Financial Group, Wellmark, EMC Insurance, and numerous other insurers create an actuarial and finance hub. Actuaries $75,000-$170,000, finance professionals $55,000-$130,000, IT specialists $65,000-$120,000.
The metro has transformed with East Village revitalization, tech startups, and quality-of-life amenities. Housing remains remarkably affordable ($280,000 median) for a metro of 700,000. West Des Moines and suburbs offer excellent schools and family lifestyle.
Iowa City / Cedar Rapids Corridor
Median Household Income: $62,000
The University of Iowa anchors Iowa City with education, healthcare (University of Iowa Hospitals), and research. Collins Aerospace (Raytheon) dominates Cedar Rapids with 10,000+ employees in aerospace. Faculty $65,000-$160,000, aerospace engineers $75,000-$130,000, healthcare professionals competitive with regional rates. Affordable housing ($250,000 median in Cedar Rapids).
Quad Cities (Davenport, Bettendorf)
Median Household Income: $58,000
Straddling the Mississippi River, the Quad Cities offer manufacturing (John Deere), healthcare, and logistics. Engineers $70,000-$110,000, skilled manufacturing $45,000-$75,000. Very affordable ($180,000 median home) with improving downtown amenities.
Sioux City
Median Household Income: $55,000
Agricultural economy with food processing (Tyson, Seaboard), healthcare, and regional services. Manufacturing and processing jobs $35,000-$60,000, healthcare competitive. Extremely affordable ($160,000 median home).
Ames – University Town
Median Household Income: $50,000
Iowa State University drives the economy with education, research, and agricultural sciences. Strong engineering and agriculture programs. Faculty $60,000-$140,000, research $50,000-$100,000. College-town charm with lower incomes reflecting student population.
| Region | Median Income | Median Home | Key Industries |
|---|---|---|---|
| Des Moines Metro | $75,000 | $280,000 | Insurance, Finance, Tech |
| Iowa City/Cedar Rapids | $62,000 | $250,000 | Aerospace, Education, Healthcare |
| Quad Cities | $58,000 | $180,000 | Manufacturing, Agriculture |
| Sioux City | $55,000 | $160,000 | Food Processing, Healthcare |
| Ames | $50,000 | $260,000 | Education, Research, Ag Tech |
Top Paying Industries in Iowa
Insurance & Financial Services
Des Moines ranks among the nation's top insurance centers. Principal Financial Group, Wellmark Blue Cross Blue Shield, EMC Insurance, and numerous carriers create concentrated expertise. Actuaries $75,000-$180,000 (ASA/FSA credentials command premiums), underwriters $55,000-$100,000, claims managers $60,000-$95,000. IT and data analytics roles in insurance $70,000-$130,000.
Aerospace (Collins Aerospace)
Collins Aerospace (Raytheon) in Cedar Rapids is one of Iowa's largest private employers, producing avionics, cabin systems, and defense electronics. Engineers $75,000-$135,000, program managers $90,000-$140,000, technicians $45,000-$70,000. Stable defense contracts provide job security.
Healthcare
University of Iowa Hospitals, UnityPoint Health, and MercyOne provide significant employment. Physicians $250,000-$420,000+, nurses $55,000-$80,000. Rural areas offer loan forgiveness and incentives to attract providers.
Agriculture & Food Processing
Iowa's agricultural heritage continues with corn, soybeans, pork, and food processing. Large-scale farming operations, ag tech, and food processing companies provide employment. Ag scientists $60,000-$110,000, plant managers $75,000-$120,000, operations $40,000-$65,000.
Advanced Manufacturing
John Deere, Vermeer, and numerous manufacturers provide skilled manufacturing careers. Engineers $70,000-$120,000, skilled trades $45,000-$80,000, production managers $65,000-$100,000.
| Industry | Entry Level | Mid-Career | Senior Level |
|---|---|---|---|
| Actuarial | $65,000 | $110,000 | $180,000+ |
| Aerospace Engineering | $70,000 | $100,000 | $135,000+ |
| Healthcare (Physicians) | $250,000 | $320,000 | $420,000+ |
| Nursing (RN) | $52,000 | $65,000 | $80,000+ |
| Software Engineering | $60,000 | $85,000 | $115,000+ |
Iowa Tax Analysis
Flat 3.8% Income Tax
Iowa's 2023 tax reform created a flat 3.8% rate—among the lowest in states with income tax:
| Salary | IA Tax (3.8%) | IL Tax (4.95%) | MN Tax (~7%) |
|---|---|---|---|
| $60,000 | $2,280 | $2,970 | $4,200 |
| $80,000 | $3,040 | $3,960 | $5,600 |
| $100,000 | $3,800 | $4,950 | $7,000 |
| $150,000 | $5,700 | $7,425 | $10,500 |
Iowa's tax burden is notably lower than neighboring Minnesota and competitive with Illinois.
Property Tax: Iowa property taxes average 1.52%—above average but offset by low home values, keeping actual bills manageable.
Sales Tax: 6% state rate plus local options (typically 1%) = 6-7% total.
Iowa Cost of Living Analysis
| Expense | Iowa | National Avg |
|---|---|---|
| Housing Index | 72 | 100 |
| Median Home Price | $210,000 | $420,000 |
| Median Rent (2BR) | $950 | $1,400 |
| Groceries Index | 93 | 100 |
| Utilities Index | 95 | 100 |
| Transportation Index | 92 | 100 |
| Healthcare Index | 94 | 100 |
Housing by Region
| Area | Median Home | Rent (2BR) |
|---|---|---|
| Des Moines | $280,000 | $1,150 |
| West Des Moines | $350,000 | $1,350 |
| Iowa City | $280,000 | $1,100 |
| Cedar Rapids | $200,000 | $950 |
| Quad Cities (IA side) | $180,000 | $900 |
| Ames | $260,000 | $1,000 |
A $65,000 salary in Iowa provides equivalent purchasing power to approximately $90,000 in Chicago or $115,000 in Denver.
Highest Paying Jobs in Iowa 2025
| Occupation | Average Salary | Top 10% Earn |
|---|---|---|
| Physicians/Surgeons | $275,000 | $420,000+ |
| Actuaries (FSA) | $140,000 | $200,000+ |
| Dentists | $170,000 | $260,000+ |
| IT Directors | $125,000 | $165,000+ |
| Aerospace Engineers | $105,000 | $140,000+ |
| Pharmacists | $118,000 | $140,000+ |
| Financial Managers | $110,000 | $155,000+ |
| Software Engineers | $90,000 | $120,000+ |
Frequently Asked Questions
Is Iowa a good value for careers?
Exceptional. Low taxes (3.8% flat), low costs (88 index), and solid wages create outstanding purchasing power. A $70,000 Iowa salary often provides better lifestyle than $95,000+ in high-cost metros. Particularly strong for insurance, manufacturing, and healthcare careers.
How is the Des Moines job market?
Strong and growing. Insurance and financial services anchor the economy with stable, well-paying jobs. Tech scene has developed with startups and established company investments. Healthcare and professional services round out opportunities. Not Chicago scale, but legitimate mid-tier city with excellent value.
Is Iowa good for actuarial careers?
Among the best locations nationally. Principal, Wellmark, EMC, and numerous carriers create concentrated demand for actuaries. Credential advancement is supported, networking opportunities are strong, and cost of living makes actuarial salaries go further than in most cities.
What's quality of life like?
Excellent for those who appreciate Midwest values. Strong schools, safe communities, friendly culture, and short commutes. Des Moines offers urban amenities (restaurants, arts, sports) at small-city scale. Outdoor recreation includes lakes, trails, and hunting. Winters are cold but not extreme. Pace is slower than coastal metros.
Are people leaving Iowa?
Iowa's population has been relatively stable, with some rural decline offset by Des Moines area growth. Unlike neighboring Illinois, Iowa isn't experiencing significant outmigration. The tax reforms and cost advantages have helped retention. Young professionals are discovering Des Moines as an affordable alternative.