Delaware vs Iowa
Property‑Tax Comparison: Delaware vs. Iowa
Intro
Both Delaware and Iowa levy property taxes that fund local services such as schools, roads, and public safety. According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), Delaware’s effective property‑tax rate is substantially lower than Iowa’s, which results in lower annual tax payments for comparable home values. The figures below summarize the key metrics for each state.
Side‑by‑side metrics
| Metric (2023 ACS) | Delaware | Iowa |
|---|---|---|
| Effective property‑tax rate | 0.53 % | 1.43 % |
| Median home value | $326,800 | $195,900 |
| Median annual property tax | $1,731 | $2,795 |
| Property tax on a $250,000 home | $1,324 | $3,567 |
| Property tax on a $500,000 home | $2,649 | $7,134 |
| Median household income | $82,855 | $73,147 |
Sources: Delaware property tax, Iowa property tax; data from the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates).
Who “wins” on property taxes?
- Winner (lower tax rate): Delaware
- Tax‑rate difference: 0.90 percentage points, which is a 62.87 % lower effective rate than Iowa’s.
- Annual tax difference for a $250,000 home: $2,243 less in Delaware ($1,324 vs. $3,567).
- Annual tax difference for a $500,000 home: $4,485 less in Delaware ($2,649 vs. $7,134).
Based on the lower effective property‑tax rate, Delaware imposes a smaller tax burden on homeowners at the same property value. The lower median annual tax ($1,731 vs. $2,795) further illustrates this difference.
Which audiences benefit most from this comparison?
| Audience | Relevance of the comparison |
|---|---|
| Current or prospective homeowners | Understanding the ongoing cost of owning a home is essential for budgeting. The lower Delaware rates mean less yearly tax outlay for the same property price. |
| Retirees or fixed‑income households | Property taxes can represent a significant portion of fixed income. States with lower rates (Delaware) may be more affordable for those relying on limited resources. |
| Real‑estate investors | Tax liability directly affects cash flow calculations. Lower effective rates improve net returns on comparable properties. |
| Policy analysts or researchers | The data provide a clear example of how state‑level tax policy translates into household‑level costs. |
All groups can use the side‑by‑side figures to evaluate the relative cost of property ownership in each state, independent of other fiscal considerations such as income tax, sales tax, or cost of living.
Conclusion
According to U.S. Census Bureau data, Delaware’s effective property‑tax rate of 0.53 % is markedly lower than Iowa’s 1.43 %. Consequently, Delaware homeowners pay less in annual property taxes across a range of home values, while median household income in Delaware is also higher. Individuals whose primary concern is minimizing property‑tax expense—such as homebuyers, retirees, and investors—will find Delaware’s tax environment more favorable based on the most recent ACS estimates.
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Data Source
All figures are drawn from the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates). This comprehensive dataset provides reliable, standardized property tax information across all states.