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?

Related Articles

Federal Court Halts Iowa Attempt to Tax Internet

October 9, 2008

How Much Sales Tax Does the Easter Bunny Pay?

March 21, 2008

Taxes on Chocolate: Not So Sweet

February 14, 2008

Pumpkin Tax in Iowa Is Gone

November 1, 2007

More on Taxing Carved Pumpkins, Exempting Consumed Pumpkins

October 29, 2007

Iowa Taxes Pumpkins To-Be-Displayed, Exempts Pumpkins To-Be-Eaten

October 26, 2007

Tax Amnesty in Iowa

May 29, 2007

Tax Cigarettes to Save Lives, But Not Too Many Lives

March 16, 2007