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

8.53%

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State and Local Individual Income Tax Collections per Capita

$1168

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State and Local Tax Burden

9.2%

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Tax Freedom Day

April 15

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Top Corporate Income Tax Rate

12%

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State Business Tax Climate Index Ranking

45

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State Sales Tax Rate

6.00%

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Average Local Sales Tax Rate

.82%

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Combined State and Average Local Sales Tax Rate

6.82%

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State and Local General Sales Tax Collections per Capita

$1019

State Gasoline Tax Rate (cents per gallon)

30.7¢

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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

1.46%

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State and Local Property Tax Collections Per Capita

$1582


Featured Articles

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April 2, 2020

Facts and Figures 2020: How Does Your State Compare?

February 13, 2020

Tax Trends at the Dawn of 2020

January 6, 2020

Local Income Taxes in 2019

July 30, 2019

Sales Tax Holidays: Politically Expedient but Poor Tax Policy, 2019

July 24, 2019

Tax Changes Taking Effect January 1, 2019

December 27, 2018


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