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Psalm 32 is an excellent example of how the words are complementary, but different. Romans 4:7-8 quotes the same passage.
Blessed is he
whose transgression is forgiven,
Whose sin is covered.
Blessed is the man
to whom the Lord does not impute iniquity,
And in whose spirit there is no deceit.
Transgression signifies rebellion against the authority of God
Sin is to miss the mark, fall short of God's glory or stray from the path.
Iniquity focuses on the guilt, or even punishment, associated with the depravity/perversity that is a result of our fallen condition.
Psalm 32:5 uses these words again, in a chiasm that focuses on restoration through confession of transgression to the Lord.
I acknowledged my sin to You,
And my iniquity I have not hidden.
I said, “I will confess my transgressions to the Lord,”
And You forgave the iniquity
of my sin.
The chiasm is much more obvious in Hebrew. But it's interesting that it's evident in English as well.
Hopefully that helps.
Blessings,