Cedar Rapids, IA Salary Guide: The Real Take-Home on $100k

You see the gross number: $100,000. It feels substantial. But in Cedar Rapids, the gap between what you earn and what you keep is narrower than you think. This guide strips away the corporate fluff to reveal exactly what your purchasing power looks like in the Corridor.

The Verification Test ($100,000 Analysis)

Let’s run the verification test on a $100,000 annual salary. This is the "sticker price" versus the "cash in hand" reality.

• Gross Salary: $100,000
• Federal Tax: -$13,614
• FICA Tax: -$7,650
• State Tax (IA): -$4,500
• Local Tax: $0

The Bottom Line:
Your Take Home Pay is $74,236.

You are losing roughly 25.8% of your gross income to taxes before you pay a single bill. That is a $25,764 haircut from the sticker price. While Iowa has eliminated state tax on retirement income, working professionals still feel the squeeze of that $4,500 state levy. It isn't catastrophic, but it is a drag on wealth accumulation compared to zero-tax states.

Monthly Net: You are working with $6,186 every month to survive and thrive.

Smart Budget Breakdown (50/30/20 Rule)

With $6,186 hitting your bank account monthly, the standard 50/30/20 rule offers a roadmap. Here is how that translates to life in Cedar Rapids.

Needs ($3,093/mo)

This covers rent, utilities, groceries, and insurance.

• The Rent Reality: Cedar Rapids rents are rising, but they remain sane compared to the coasts. You can secure a high-end one-bedroom or a solid two-bedroom apartment in a desirable area (like NewBo or Czech Village) for roughly $1,200 - $1,400.
• Purchasing Power: After rent and utilities ($1,600 total), you have roughly $1,400 left for food, transport, and insurance. This is comfortable. You aren't eating ramen; you are buying groceries at Hy-Vee without checking the price tag.

Wants ($1,856/mo)

This is your disposable income for lifestyle.

• This is a massive amount for a secondary Midwest market. This covers dining out at地方 spots, streaming services, and a car payment with insurance. You have significant flexibility here to enjoy life.

Savings ($1,237/mo)

• Wealth Creation: This is where the Cedar Rapids advantage kicks in. A $1,237 monthly surplus is enough to max out a Roth IRA ($7,000/year) and still have nearly $8,000 left over for a brokerage account or emergency fund. In NYC, this savings bracket would be wiped out by rent alone.

Cedar Rapids Taxes vs The Competition

How does the Iowa tax burden stack up against major metros? Let’s look at the raw numbers on that $100,000 salary.

The Verdict:
Cedar Rapids loses to Austin (due to Texas having no state income tax), but it significantly beats New York City. You keep $8,800 more in Cedar Rapids than you would in NYC. If you want a high salary without the tax brutality of the Northeast, Iowa is a mathematically sound move.

Frequently Asked Questions (FAQ)

Q: What is the income tax rate in Cedar Rapids?
A: Iowa has a graduated individual income tax rate. As of the latest legislation, the rate is decreasing annually. For a $100,000 salary, you are effectively paying a combined state rate of roughly 4.5% ($4,500), plus Federal and FICA.

Q: Is $100k a good salary in Cedar Rapids?
A: Yes. The median household income in Cedar Rapids is roughly $65,000. Earning $100,000 puts you in a strong position, allowing for comfortable housing, leisure spending, and a robust savings rate of over $1,200/month.

Q: Does Cedar Rapids have a local city tax?
A: No. Iowa law allows cities to levy a local income tax, but Cedar Rapids currently does not impose one on residents. Your local tax rate is $0.

Sources: IRS 2026 Tax Brackets (Est.), Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics, Iowa Department of Revenue.