States Inaugurate a Flat Tax Revolution
In what is already a year of significant bipartisan focus on tax relief, 2022 is launching something of a flat tax revolution by reforming income taxes.
8 min read
Iowa Tax Rates, Collections, and Burdens
How does Iowa’s tax code compare? Iowa has a graduated individual income tax, with rates ranging from 4.40 percent to 6.00 percent. There are also jurisdictions that collect local income taxes. Iowa has a 5.50 percent to 8.40 percent corporate income tax rate. Iowa has a 6.00 percent state sales tax rate, a max local sales tax rate of 1.00 percent, and an average combined state and local sales tax rate of 6.94 percent. Iowa’s tax system ranks 38th overall on our 2023 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: How Does Your State Compare?
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All Related Articles
2023 State Business Tax Climate Index
While there are many ways to show how much is collected in taxes by state governments, our Index is designed to show how well states structure their tax systems by focusing on the how more than the how much in recognition of the fact that there are better and worse ways to raise revenue.
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How Do Taxes Affect Interstate Migration?
IRS and Census data show that people and businesses favor states with low and structurally sound tax systems, which can impact the state’s economic growth and governmental coffers.
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Combined Federal and State Corporate Income Tax Rates in 2022
When examining tax burdens on businesses, it is important to consider both federal and state corporate taxes. Corporate taxes are one of the most economically damaging ways to raise revenue and are a promising area of reform for states to increase competitiveness and promote economic growth, benefiting both companies and workers.
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Where Do People Pay the Most in Property Taxes?
Property taxes are the primary tool for financing local government and generating state-level revenue in some states as well.
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Unpacking the State and Local Tax Toolkit: Sources of State and Local Tax Collections (FY 2020)
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2022 Sales Tax Holidays: Bad Policy Any Year, But Especially in Response to High Inflation
However well-intended they may be, sales tax holidays remain the same as they always have been—ineffective and inefficient.
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State and Local Sales Tax Rates, Midyear 2022
While many factors influence business location and investment decisions, sales taxes are something within policymakers’ control that can have immediate impacts.
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State Tax Reform and Relief Enacted in 2022
Among the 46 states that held legislative sessions this year, structural state tax reform and temporary tax relief measures were recurring themes.
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Vapor Taxes by State, 2022
If the policy goal of taxing cigarettes is to encourage cessation, vapor taxation must be considered a part of that policy design.
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