State and Local Sales Tax Rates, 2021
While many factors influence business location and investment decisions, sales taxes are something within lawmakers’ control that can have immediate impacts.
12 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?
While many factors influence business location and investment decisions, sales taxes are something within lawmakers’ control that can have immediate impacts.
12 min readTwenty-six states and the District of Columbia had notable tax changes take effect on January 1, 2021. Because most states’ legislative sessions were cut short in 2020 due to the COVID-19 pandemic, fewer tax changes were adopted in 2020 than in a typical year.
24 min readThe coronavirus relief package represents the second-largest recovery legislation, behind only the CARES Act, for a combined total of more than $3 trillion in support.
8 min readOn Monday, members of the bipartisan Gang of Eight negotiating an end-of-year pandemic relief package announced that they had settled on language and had divided the package into two bills: a pandemic aid package and a $160 billion state and local support package.
6 min readA typical American household with four phones on a “family share” wireless plan can expect to pay about $270 per year (or 22 percent of their cell phone bill) in taxes, fees, and surcharges.
36 min readPresident Joe Biden’s tax plan would yield combined top marginal state and local rates in excess of 60 percent in three states: California, Hawaii, and New Jersey (also New York City).
4 min readFive states currently collect corporate AMTs: California, Iowa, Kentucky, Minnesota, and New Hampshire. This is a significant drop from the eight states that levied AMTs in tax year 2017.
2 min readState tax revenue collections were down 5.5 percent in FY 2020, driven by a dismal final quarter (April through June) as states began to feel the impact of the COVID-19 pandemic. While these early losses are certainly not desirable, they are manageable and far better than many feared.
16 min readNineteen states had notable tax changes take effect on July 1, 2020. Pandemic-shortened sessions contributed to less—and different—activity on the tax front than is seen in most years, and will likely yield an unusually active summer and autumn, with many legislatures considering new measures during special sessions.
12 min read