Taxes in Iowa

Iowa Tax Rates, Collections, and Burdens

How does Iowa’s tax code compare? Iowa has a graduated individual income tax, with rates ranging from 0.33 percent to 8.53 percent. There are also jurisdictions that collect local income taxes. Iowa has a 5.50 percent to 9.80 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 2022 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. 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?

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

July 24, 2019

Iowa Adopts a “Soft” Property Tax Cap

April 29, 2019

Facts and Figures 2019: How Does Your State Compare?

March 19, 2019

Tax Changes Taking Effect January 1, 2019

December 27, 2018

2018 Outstanding Achievement in State Tax Reform

October 30, 2018

2019 State Business Tax Climate Index

September 26, 2018

Five States Accomplish Meaningful Tax Reform in the Wake of the Tax Cuts and Jobs Act

July 23, 2018

What’s in the Iowa Tax Reform Package

May 9, 2018

‘Iowa-Grown’ Steel Under Threat by Tariffs

March 16, 2018

Iowa Governor Outlines Plan to Cut Rates and Repeal Federal Deductibility

February 14, 2018

Lunch Links: Trump Tax Vision Addressed; Wisconsin’s Walker New Head of Republican Governors Association; Tax Reform on Iowa Senate Agenda

November 14, 2016

Lunch Links: Raising Gas Taxes A ‘Non-Issue’ for Incumbents in Iowa Legislative Races; High-Income Earner Taxes on Ballot in California and Maine; Corporate Tax Breaks for Housing, Development Projects Cost NYC $3 Billion

November 3, 2016

Lunch Links: Justice Department Charges Those Defrauding Americans of $300M in IRS Phone Scams; Christie Criticizes Lt. Governor on Transportation Revenue Stance; More TV Series Move to Hollywood for Tax Benefits

October 28, 2016

Lunch Links: Beer Tax Cut Off to Spirited Start in Senate; Mobile Workforce Bill Also on Senate Agenda; Nevada Taxpayers Cite Concerns with Proposed Stadium Tax; Nebraska Lawmakers Take Sides on Marijuana Debate

September 27, 2016

#TBT to Some Vintage Tax Foundation Research That is Even More Important Today

June 2, 2016

Lunch Links: French Raid Google, Castles and Property Taxes, and the “Federal Student Tax”

May 25, 2016

New Book: Iowa Tax Reform Options

May 5, 2016

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