Why is the BEA RPP for Iowa different from a single CPI number?

BEA splits regional price parity into three components — goods, services, and rents — reweighted to the BEA's national consumption basket. Iowa's overall index of 88.8 reflects rents 66.0, services 87.3, and goods 96.6.

Where does Iowa rank for Mechanical Engineer pay?

On nominal BLS wages alone, Iowa ranks among the 51 states and DC by median pay. After the BEA cost-of-living adjustment the ordering changes — high-cost states fall, low-cost states rise. Both rankings are shown in the data table on this page.

How wide is the wage spread in Iowa?

P10 to P90 spans $64,900 to $133,850. That spread captures entry-level to top-quartile pay, including specialty differentials and metro-area variance within the state.

Is Iowa a 'real-wage arbitrage' state for Mechanical Engineers?

Yes — the BEA RPP of 88.8 is below the national 100 baseline, so nominal $97,570 stretches to a real-wage equivalent of $109,914. The take-home advantage versus a higher-RPP state is meaningful for Mechanical Engineers comparing offers across regions.

When does this data update?

BLS OES releases a new May reference set roughly each spring; we re-run the ETL pipeline within two weeks of release. BEA RPP refreshes annually. The last-synced timestamp at the top of this page reflects the most recent build.

Does PE license raise mechanical engineer pay in Iowa?

PE (Professional Engineer) license through Iowa's engineering board typically adds 5-15% to the BLS-reported median for mechanical engineers, concentrated in industries that require sealed drawings — civil-mechanical (HVAC for buildings), pressure-vessel, oil/gas, and government contracts. In R&D, defense (where security clearance dominates), and consumer-product design, PE has limited wage premium. Iowa follows the NCEES path: BS-ABET + FE exam + 4 years of progressive experience + PE exam.

Defense / aerospace vs auto vs HVAC mechanical engineer pay in Iowa?

BLS does not segment by industry. In {state}, defense and aerospace primes typically lead on base pay with strong total comp once retention/clearance bonuses layer in (often P75-P90 of the BLS band). Automotive and consumer products sit mid-band. HVAC / building-systems mechanical engineering pays below the BLS median for the first 5 years, then catches up via PE-track roles and design-build firm equity.

Iowa Mechanical Engineer Salary: BLS $98K Median, Real $110K (2026)

TL;DR

BLS reports Iowa Mechanical Engineer median pay at $97,570. Adjusted for state cost of living, real purchasing power equals $109,914.
On a real-wage basis, this state sits at #14 of 51; nominal rank is #36.
Below-100 RPP flips this state above its nominal rank in real-wage terms; the gap is about $12,344.
Bottom quartile $78,610, top quartile $108,800. The P90 ($133,850) is roughly 2.1× the P10 ($64,900).

Wage breakdown — Iowa

Percentile	Nominal (BLS)	Real (BEA RPP-adjusted)
P10 (entry tier)	$64,900	$73,111
P25 (lower quartile)	$78,610	$88,556
P50 (median)	$97,570	$109,914
P75 (upper quartile)	$108,800	$122,565
P90 (top tier)	$133,850	$150,785
Mean	$99,070	$111,604
Employment	4,230 Mechanical Engineers in Iowa

Cost of living — BEA Regional Price Parity

Component	Iowa index (US = 100)
All-items RPP	88.8
Goods	96.6
Services	87.3
Rents	66.0

Iowa sits below the national baseline (RPP 88.8), so nominal pay translates to a higher real wage than the BLS median suggests — particularly visible in rents at 66.0.

After-tax take-home — Iowa (2024 BLS · 2024 tax year, single filer)

Layer-by-layer take-home math at the BLS median

Layer	Amount	Note
Gross BLS P50 (Mechanical Engineer)	$97,570	nominal median
Federal income tax	−$12,712	13.0% effective; std deduction $15,750 applied
State income tax	−$3,109	3.8% flat (2026, SF 2417 fully phased)
FICA (SS 6.2% + Medicare 1.45%)	−$7,464	SS capped at $183,600 wage base
Take-home (after-tax)	$74,284	76.1% of gross
Real take-home (RPP-adjusted)	$83,683	÷ (88.8 / 100) BEA cost-of-living

What the Iowa state-tax burden means for Mechanical Engineer take-home

Mid-band state-tax burden at 3.2% effective. Combined with federal and FICA, take-home is $74,284 (76.1% of gross). After the 88.8 RPP, real take-home is $83,683.

Computed from 2026 IRS federal brackets (Rev. Proc. 2025-32), 2026 state DOR brackets, and 2026 FICA rates. Single filer, standard deduction, no other adjustments. See methodology · tax for limitations (married filers, ITM/SALT itemizers, retirement deferrals, HSA, dependent credits, etc.).

National context

Across the United States, BLS reports a national median of $102,320 for Mechanical Engineers with mean pay of $110,080 and total employment of 286,760. Iowa sits at #36 on nominal pay and #14 on real (cost-adjusted) pay among the 51 states and DC. After cost adjustment, Iowa climbs 22 positions — the cost of living is favorable relative to the wage.

Frequently asked questions

Why is the BEA RPP for Iowa different from a single CPI number?: BEA splits regional price parity into three components — goods, services, and rents — reweighted to the BEA's national consumption basket. Iowa's overall index of 88.8 reflects rents 66.0, services 87.3, and goods 96.6.
Where does Iowa rank for Mechanical Engineer pay?: On nominal BLS wages alone, Iowa ranks among the 51 states and DC by median pay. After the BEA cost-of-living adjustment the ordering changes — high-cost states fall, low-cost states rise. Both rankings are shown in the data table on this page.
How wide is the wage spread in Iowa?: P10 to P90 spans $64,900 to $133,850. That spread captures entry-level to top-quartile pay, including specialty differentials and metro-area variance within the state.
Is Iowa a 'real-wage arbitrage' state for Mechanical Engineers?: Yes — the BEA RPP of 88.8 is below the national 100 baseline, so nominal $97,570 stretches to a real-wage equivalent of $109,914. The take-home advantage versus a higher-RPP state is meaningful for Mechanical Engineers comparing offers across regions.
When does this data update?: BLS OES releases a new May reference set roughly each spring; we re-run the ETL pipeline within two weeks of release. BEA RPP refreshes annually. The last-synced timestamp at the top of this page reflects the most recent build.
Does PE license raise mechanical engineer pay in Iowa?: PE (Professional Engineer) license through Iowa's engineering board typically adds 5-15% to the BLS-reported median for mechanical engineers, concentrated in industries that require sealed drawings — civil-mechanical (HVAC for buildings), pressure-vessel, oil/gas, and government contracts. In R&D, defense (where security clearance dominates), and consumer-product design, PE has limited wage premium. Iowa follows the NCEES path: BS-ABET + FE exam + 4 years of progressive experience + PE exam.
Defense / aerospace vs auto vs HVAC mechanical engineer pay in Iowa?: BLS does not segment by industry. In {state}, defense and aerospace primes typically lead on base pay with strong total comp once retention/clearance bonuses layer in (often P75-P90 of the BLS band). Automotive and consumer products sit mid-band. HVAC / building-systems mechanical engineering pays below the BLS median for the first 5 years, then catches up via PE-track roles and design-build firm equity.

Sources & methodology

U.S. Bureau of Labor Statistics — Occupational Employment and Wage Statistics (OES), SOC 17-2141, 2024 reference period.
U.S. Bureau of Economic Analysis — Regional Price Parities, 2023 vintage (all-items, goods, services, rents).
Real-wage figures = nominal BLS wage ÷ (state RPP / 100).
See the methodology page for full computation details and limitations.

By Marcus Liang · Founder & Editor · Last synced 2026-05-05.

Cross-comparison: see how Iowa Mechanical Engineer pay ranks against the other 254 state × occupation pages on the Real Wage Atlas → — four-way ranking by real wage, after-tax take-home, state-tax savings, and cost-of-living arbitrage.