When the Iowa Hawkeyes travel to Lincoln this Friday, they’ll renew what has become a legitimate Big Ten football rivalry, albeit one the Hawkeyes have controlled since Nebraska joined the conference in 2011. Last year’s contest ended with a walk-off field goal that gave Iowa a 13–10 victory, and the 2025 matchup could be just as tight, with both teams bringing a 7-4 record into the game.
But while the teams may be evenly matched on the field, the scoreboard looks very different when it comes to tax policy — and Iowa continues to control the line of scrimmage.
Since the rivalry began in 1891, the Hawkeyes and Huskers have faced off 55 times. This year, once again, Nebraska enters the game as an underdog. Unfortunately for Husker fans, that underdog status extends well beyond Memorial Stadium.
For years, both states struggled under tax systems that burdened families and small businesses. But Iowa has been modernizing its playbook over the last decade — and the results have been dramatic. Iowa has improved from a low of 45th in 2019, climbing all the way to 17th overall in the latest Tax Foundation State Tax Competitiveness index, including moving up two spots this year alone. Nebraska, while making progress of its own, still trails Iowa, having landed at 22nd overall.
Meanwhile, many Nebraskans have noticed Iowa’s advantage. We suspect that when the newest census bureau data is released, it will show that many Nebraskans entered the transfer portal and moved to Iowa. With more than half of Nebraska’s population living roughly an hour from the Hawkeye State, it’s no surprise that they would choose Iowa’s end zones of opportunity.
In football, a team succeeds when it has the right coaches, a solid playbook, and the discipline to execute. Iowa’s tax success story is no different.
Governor Kim Reynolds and the Iowa Legislature have spent the past several years calling the right plays, including passage of one of the most transformative tax reform packages in the country in 2022, among three other rounds of income tax cuts since 2018. The result? Iowa has sprinted up the national tax rankings faster than any rival in the region.
Just a few years ago, Iowa’s top income tax rate was a punishing 9%, the sixth highest in the nation. Today, Iowans enjoy a flat 3.8% income tax rate. Retirement income is tax-free. The inheritance tax is gone. In total, Iowans are now keeping billions of dollars that otherwise would go to state government.
These results show up across multiple categories where Iowa consistently outperforms Nebraska.
Source: Comparing 2025 to 2026 rankings; Tax Foundation’s 2025 and 2026 State Competitiveness Index
Iowa leads in most major areas, though opponents can still find daylight in categories like corporate taxes, unemployment insurance taxes, and especially property taxes — where Iowa’s 33rd-place ranking risks giving rival states room to march down the field.
As the Hawkeyes and Huskers line up on Friday, the football game may be evenly matched. But in the tax environment that shapes where families live and where businesses invest, Iowa continues to win in the trenches.
A good coach knows you don’t let up with a lead — you fight against complacency and keep trying to put points on the board. Iowa has built a winning team in tax policy, but it needs to continue calling smart plays to stay ahead. Meanwhile, Nebraska has work to do if it hopes to be competitive. Regardless of who wins on Friday, Iowa’s taxpayers are already celebrating. And for Nebraska’s taxpayers, the ball is sitting on the tee, waiting for a kickoff toward more reforms.
Print a PDF