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%

See Full Study

State and Local Individual Income Tax Collections per Capita

$1196

Click for a comparative tax map!

State and Local Tax Burden

9.2%

Click for a comparative tax map!
See Full Study

Top Corporate Income Tax Rate

12%

See Full Study

State Business Tax Climate Index Ranking

42

See Full Study

State Sales Tax Rate

6.00%

Click for a comparative tax map!
See Full Study

Average Local Sales Tax Rate

.94%

See Full Study

Combined State and Average Local Sales Tax Rate

6.94%

Click for a comparative tax map!
See Full Study

State and Local General Sales Tax Collections per Capita

$1039

Click for a comparative tax map!

State Gasoline Tax Rate (cents per gallon)

30.5¢

Click for a comparative tax map!

State Cigarette Tax Rate (dollars per 20-pack)

$1.36

Click for a comparative tax map!

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

1.50%

Click for a comparative tax map!

State and Local Property Tax Collections Per Capita

$1632

Click for a comparative tax map!

Featured Articles

Top Rates in Each State Under Joe Biden’s Tax Plan

October 20, 2020

State Tax Changes Effective July 1, 2020

July 9, 2020

A Visual Guide to Unemployment Benefit Claims

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


Related Articles

The State Business Tax Climate Index Is Your Guide to Economic “Wins Above Replacement”

2021 State Business Tax Climate Index

Top Rates in Each State Under Joe Biden’s Tax Plan

Does Your State Have a Corporate Alternative Minimum Tax?

New Census Data Shows States Beat Revenue Expectations in FY 2020

State Tax Changes Effective July 1, 2020

Iowa Decouples from 163(j) and GILTI, Clarifies Non-Taxation of PPP Loans

April 17th Morning State Tax Update

April 10th Afternoon State Tax Update

These States Could Tax Your Recovery Rebates

A Visual Guide to Unemployment Benefit Claims

March 24th Morning State Tax Update

Facts and Figures 2020: How Does Your State Compare?

Iowa Governor Proposes Second Round of Tax Reform

Tax Trends at the Dawn of 2020

Local Income Taxes in 2019

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

Iowa Adopts a “Soft” Property Tax Cap

Facts and Figures 2019: How Does Your State Compare?

Tax Changes Taking Effect January 1, 2019