Taxes in Iowa

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 rank?  Below, we have highlighted a number of tax rates, ranks, and measures detailing Iowa’s income tax, business tax, sales tax, and property tax systems. Click the tabs below to explore!

Top Individual Income Tax Rate

8.98%

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State and Local Individual Income Tax Collections per Capita

$1145

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State and Local Tax Burden

9.2%

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Tax Freedom Day

April 14

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Top Corporate Income Tax Rate

12%

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State Business Tax Climate Index Ranking

40

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State Sales Tax Rate

6.00%

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Average Local Sales Tax Rate

.80%

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Combined State and Average Local Sales Tax Rate

6.80%

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State and Local General Sales Tax Collections per Capita

$1075

State Gasoline Tax Rate (cents per gallon)

30.5¢

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State Cigarette Tax Rate (dollars per 20-pack)

$1.36

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Property Taxes Paid as a Percentage of Owner-Occupied Housing Value

1.44%

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State and Local Property Tax Collections Per Capita

$1569


Featured Articles

2019 State Business Tax Climate Index

September 26, 2018

Iowa Tax Reform Options: Building a Tax System for the 21st Century

May 5, 2016

Iowa Illustrated: A Visual Guide to Taxes & the Economy

July 29, 2014


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