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. How does Iowa collect tax revenue? 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

Letter to Governor Culver of Iowa Regarding the Iowa Tax Credit Review Panel

November 24, 2009

Connecting the Dots in Iowa

October 20, 2009

Iowa Film Credit Report Reveals More Problems; Criminal Investigation Forthcoming

October 5, 2009

Iowa Governor Wants a Review of All Tax Credits

September 28, 2009

Iowa Officials May Be Trying to Get Out of Bad Film Tax Credit Deals

September 24, 2009

Corruption and Abuse in Iowa’s Film Tax Credit Program

September 22, 2009

Can Governments Buy Jobs? And If So, How Much Should They Cost?

March 3, 2009

Podcast: David Yepsen of the Des Moines Register – Tax and Budget Reform in Iowa

January 14, 2009

State Budgets: Iowa Cancels Some Spending to Address Shortfall

December 31, 2008

Best of the Blogosphere: Property Taxes, Nonpayers and Sanford’s SC Tax Reform Plan

December 15, 2008

Even in the World of Tax Policy, There’s Something to Be Thankful For

November 26, 2008

Tax or Treat?

October 31, 2008

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