Iowa tax rates over time
Income taxes bring in nearly half of the General Fund’s revenue, and Iowa has cut both personal and corporate rates sharply since 2018. Rates apply by tax year (the calendar year), not the state’s July-to-June fiscal year. What the state takes in
Individual income tax
- 2025 on3.80%, one flat rate2024 Iowa Acts, chapter 1094 (SF 2442, Individual Income Tax Rate Act)
- 20244.40% to 5.70%Stepping down under the 2022 and 2024 laws
- 20234.40% to 6.00%, four brackets2022 Iowa Acts, chapter 1002 (Income Tax Rate Reduction and Exemptions Act)
- 2019 to 20220.33% to 8.53%, nine brackets2018 Iowa Acts, chapter 1161 (Income and Sales Tax Modification Act)
- Before 20190.36% to 8.98%, nine brackets1997 Iowa Acts, chapter 8
Corporate income tax
- 20247.10% top rateReductions triggered under 2022 Iowa Acts, chapter 1002, toward 5.50%
- 20238.40% top rate2022 Iowa Acts, chapter 1002
- 2021 and 20229.80% top rate2018 Iowa Acts, chapter 1161
- Through 202012.00% top rate (in place since the 1980s)
Sales and use tax
6%, since 2008. One cent of it goes to school infrastructure rather than the General Fund (2008 Iowa Acts, chapter 1134). Local option sales taxes can add up to 1% more.
Sources: the Legislative Services Agency’s Revenue History fiscal topic and the Iowa Department of Revenue. Brackets are indexed to inflation each year.