How Well-Funded Are Pension Plans in Your State?
Although most states are on solid financial footing following the coronavirus crisis, pension liabilities are a deep-seated problem that long predates the pandemic.
2 min readHow does Iowa’s tax code compare? Iowa has a graduated state individual income tax, with rates ranging from 4.40 percent to 5.70 percent. There are also jurisdictions that collect local income taxes. Iowa has a graduated corporate income tax, with rates ranging from 5.5 percent to 7.1 percent. Iowa also has a 6.00 percent state sales tax rate and an average combined state and local sales tax rate of 6.94 percent. Iowa has a 1.40 percent effective property tax rate on owner-occupied housing value.
Iowa has an inheritance tax. Iowa has a 30 cents per gallon gas tax rate and a $1.36 cigarette excise tax rate. The State of Iowa collects $5,926 in state and local tax collections per capita. Iowa has $6,972 in state and local debt per capita and has a 90 percent funded ratio of public pension plans. Overall, Iowa’s tax system ranks 33rd on our 2024 State Business Tax Climate Index.
Each state’s tax code is a multifaceted system with many moving parts, and Iowa is no exception. The first step towards understanding Iowa’s tax code is knowing the basics. How does Iowa collect tax revenue? Click the tabs below to learn more! You can also explore our state tax maps, which are compiled from our annual publication, Facts & Figures 2024: How Does Your State Compare?
Although most states are on solid financial footing following the coronavirus crisis, pension liabilities are a deep-seated problem that long predates the pandemic.
2 min readState taxation of GILTI is unconventional and economically uncompetitive and will become even more so if the federal government adopts a more aggressive approach to taxing GILTI, as outlined in the American Jobs Plan Act.
32 min readA landmark comparison of corporate tax costs in all 50 states, Location Matters provides a comprehensive calculation of real-world tax burdens, going beyond headline rates to demonstrate how tax codes impact businesses and offering policymakers a road map to improvement.
8 min readWith so many federal changes occurring in such a short amount of time—including some federal provisions changing more than once and a major change to the treatment of UC income occurring in the middle of tax filing season—state legislators have faced the challenge of responding to these changes quickly in order to provide certainty to taxpayers.
24 min readNew Yorkers faced the highest burden, with 14.1 percent of income in the state going to state and local taxes. Connecticut (12.8 percent) and Hawaii (12.7 percent) followed.
19 min readOur updated 2021 edition of Facts & Figures serves as a one-stop state tax data resource that compares all 50 states on over 40 measures of tax rates, collections, burdens, and more.
1 min readHere’s each state’s estimated revenue gains or losses in 2020, alongside the state and local aid that would be allocated to each under the American Rescue Plan Act.
8 min readCongress chose to exempt forgiven Paycheck Protection Program (PPP) loans from federal income taxation. Many states, however, remain on track to tax them by either treating forgiven loans as taxable income, denying the deduction for expenses paid for using forgiven loans, or both.
7 min readIndividual income taxes are a major source of state government revenue, accounting for 37 percent of state tax collections in fiscal year (FY) 2017. Several states had notable individual income tax changes in 2020: Arizona, Arkansas, Massachusetts, Michigan, Minnesota, North Carolina, Ohio, Tennessee, Virginia, and Wisconsin.
22 min readStates compete with each other in a variety of ways, including in attracting (and retaining) residents. Sustained periods of inbound migration lead to (and reflect) greater economic output and growth. Prolonged periods of net outbound migration, however, can strain state coffers, contributing to revenue declines as economic activity and tax revenue follow individuals out of state.
4 min read