Iowa

 
 

The facts on Iowa’s Tax Climate

Iowa's Individual Income Tax System
Iowa's personal income tax system consists of nine brackets and a top rate of 8.98%. That rate ranks 4th highest among states levying an individual income tax. Iowa's income tax collections per person were $903 in 2010 which ranked 20th highest nationally.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita

Iowa's Corporate Income Tax System
Iowa's corporate income tax system consists of four brackets and a top rate of 12%. That rate ranks highest among states levying an corporate income tax. Iowa's corporate tax collections per person were $63 in 2010 which ranked 13th lowest nationally.
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita
50-State Table of State Corporate Income Tax Collections Per Capita

Iowa Sales and Excise Taxes
Iowa levies a 6% general sales or use tax on consumers, which is the same as the national median of 6%. The average local sales tax rate is an additional 0.82%. Iowa's state and local governments collect $901 per person in general sales taxes and $416 per person in excise taxes, for a combined figure of $1316, which ranks 24th lowest nationally. Iowa's gasoline tax stands at 22¢ (18th lowest nationally), while its cigarette tax stands at $1.36 (24th highest nationally.)
50-State Table of State and Local General and Selective Sales Tax Collections Per Capita

Iowa Property Tax Collections Average
Iowa's state and local governments collected approximately $1367 per person in property taxes, which ranks 23rd highest nationally.
State and local property tax collections per capita by state

Tax Freedom Day Arrives on April 9th in Iowa

Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2013, Iowa taxpayers worked until April 9th (17th earliest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: Minnesota, April 23rd (ranked 7th latest nationally); Wisconsin, April 20th (ranked 11th latest nationally); Illinois, April 25th (ranked 5th latest nationally); Missouri, April 8th (ranked 14th earliest nationally); Nebraska, April 12th (ranked 23rd earliest nationally); and South Dakota, April 4th (ranked 6th earliest nationally).

Full study of Tax Freedom Day, nationwide and in each state

Iowa's State and Local Tax Burden In Line with National Average

Iowa's 2010 tax burden of 9.58% ranks 24th highest out of 50 states, and is below the national average of 9.9%. Iowa's taxpayers pay $3660 per capita in state and local taxes.
Iowa's State-Local Tax Burden, 1977-Present
Other States' State/Local Tax Burdens
Map of U.S. Showing all State's Burdens and Ranks
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2009

Iowa's 2013 Business Tax Climate Index Ranks 42

Iowa ranks 42nd in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and taxes on property, including residential and commercial property. The ranks of neighboring states are as follows: Minnesota, 45th, Wisconsin, 43rd, Illinois, 29th, Missouri, 16th, Nebraska, 31st, and South Dakota, 2nd.
50-State Comparison of Business Tax Climates (data only)
2013 State Business Tax Climate Index (full study)

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