Modifying the individual and alternate income tax rates, and including applicability provisions

Where it is now

1. ✓
   Done: IntroducedFebruary 20, 2025
2. ✕
   Stopped: SubcommitteeDied when the General Assembly ended
3. Next: House committeeFunnel: by February 20, 2026
4. Next: Passes the House
5. Next: Senate committeeFunnel: by March 20, 2026
6. Next: Passes the Senate
7. Next: To the Governor
8. Next: Signed into law

Died when the session ended The General Assembly adjourned on October 2, 2026. Bills that didn’t pass both chambers died. What’s a funnel?

What’s in it

This bill decreases the individual income tax rate on taxable income from 3.8 percent to 2.5 percent, and correspondingly reduces the alternate income tax rate from 4.3 percent to 3.0 percent. The bill applies to tax years beginning on or after January 1, 2026.

From the explanation printed with the bill as introduced, written by the Legislative Services Agency. Amendments adopted later aren’t reflected. Full bill text

Iowa Code it changes

Amends§422.5

Read from the bill as introduced. Each links to every bill touching that chapter of the Iowa Code. How the Code works