Magnetorheological elastomers (MREs) are smart viscoelastic materials in which their physical properties can be altered when subjected to a varying magnetic field strength. MREs consist of an elastomeric matrix mixed with magnetic particles, typically carbonyl iron particles (CIPs). The magnetic field-responsive property of MREs have led to their wide exposure in research. The potential development and commercialization of MRE-based devices requires extensive investigation to identify the essential factors that can affect their properties. For this reason, this research aims to investigate the impact of CIPs’ type, concentration and coating on the rheological and mechanical properties of MREs. Isotropic MREs are fabricated with four different CIP compositions differing between hard or soft, and coated or uncoated samples. Each MRE composition have three different concentrations, which is 5%, 10%, and 20% by volume. The dynamic properties of the fabricated samples are tested by compression oscillations on a dynamic mechanical analyzer (DMA). Frequency and strain dependent measurements are performed to obtain the storage and loss modulus under different excitation frequencies and strain amplitudes. The emphasis is on the magnetorheological (MR) effect and the Payne effect which are an intrinsic characteristics of MREs. The effect of the CIPs’ type, coating, and concentration on the MR and Payne effect of MREs are elucidated. Overall, it is observed that, the storage and loss modulus exhibit a strong dependence on both the frequency excitations and the strain amplitudes. Samples with hard and coated CIPs tend to have a higher MR effect than other samples. A decrease in the storage modulus and non-monotonous behavior of the loss modulus with increasing strain amplitude are observed, indicating the Payne effect. The results of this study can aid in the characterization of MREs and the proper selection of CIPs grades based on the application.