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90th General Assembly · Funnel one-pager · Monday, November 9, 2026

SF 2398: Relating to state taxation by modifying alternate and individual income tax rates, and including effective date and retroactive applicability provisions

Died when the session ended · The General Assembly adjourned on April 19, 2024. Bills that didn’t pass both chambers died.

What it does

This bill relates to state taxation by modifying alternate and individual income tax rates. The bill strikes the graduated individual income tax rates that go into effect in tax years 2024 and 2025, and establishes new individual income tax flat rates beginning in tax years on or after January 1, 2024.65 percent.50 percent.90 percent goes into effect for tax years beginning on or after January 1, 2026.21(5) due to removing income tax brackets and establishing the individual income tax flat rate commencing with tax years beginning on or after January 1, 2024.

Sponsors

Ways and Means committee

Cost

Less revenue: up to $1.63B

The individual income tax rate changes in Senate File 2398 are projected to decrease net individual income tax liability and State General Fund revenue by the following amounts: • FY 2024 = $279.3 million • FY 2025 = $1,627.4 million • FY 2026 = $901.3 million…

Lobbying · 6 for, 1 against

For: Americans For Prosperity; Associated General Contractors of Iowa; Iowa Association of Business and Industry (ABI); Iowa Business Council; Iowa Taxpayers Association; National Federation of Independent Business (NFIB /IA)

Against: AFSCME Iowa Council 61

In plain words

  1. February 26, 2024Filed in the Senate
  2. February 26, 2024Approved by the Senate committee
  3. March 1, 2024Cost estimate (fiscal note) posted

From public records at legis.iowa.gov, compiled by Funnel (iowafunnel.com), an independent, nonpartisan site. Current as of Monday, November 9, 2026. https://iowafunnel.com/bills/90/SF2398