Bills › 91st General Assembly
Modifying the individual and alternate income tax rates, and including applicability provisions
Sponsored by Rep. David Jacoby (D)
Topics:TaxesIncome taxes
Where it is now
- Done: IntroducedFebruary 20, 2025
- Stopped: SubcommitteeDied when the General Assembly ended
- Next: House committeeFunnel: by February 20, 2026
- Next: Passes the House
- Next: Senate committeeFunnel: by March 20, 2026
- Next: Passes the Senate
- Next: To the Governor
- Next: Signed into law
Died when the session ended The 2026 session adjourned on May 3, 2026, the General Assembly’s last regular session. Bills that didn’t pass both chambers died. What’s a funnel?
What’s in it
AI summary Starting in 2026, people in Iowa will pay a lower rate on the money they earn. The tax rate for individual income will drop from 3.8 percent to 2.5 percent, and the alternate income tax rate will decrease from 4.3 percent to 3.0 percent.1
Read the official explanation
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.