State of play: Iowa's individual income tax rate dropped to 3.8% this year, down from a top rate of 5.7% in 2024 and 8.53% in 2019.

The measure gives Iowa the sixth-lowest income tax rate among the 41 states that have the tax, according to the Tax Foundation. It also adds Iowa to the 14 states that have a flat income tax rate.

The Tax Foundation, a nonprofit that attempts to analyze states' tax policies, has boosted Iowa's ranking nationally in terms of tax competitiveness, ranking it 20th overall for 2025.. Prior ...

Iowa Tax Guide 2025. Explore Iowa's 2025 state tax rates for income ... Localities can add as much as 0.94%, and the average combined rate is 6.94%, according to the Tax Foundation. Groceries ...

out of 50 states by the nonpartisan Tax Foundation, despite the fact that the Iowa legislature enacted property tax reform earlier this year. Iowa just missed the Tax Foundation's ranking of the ...

Iowa's business tax climate is among the worst in the nation, according to a report released Tuesday, which looked at the state's tax system and economy. The report, released by the Future of Iowa ...

Like most states, Iowa has a graduated-rate income tax, according to a new report from Tax Foundation. While its top rate, 6%, is lower than that of Minnesota (9.85%), Wisconsin (7.65%) and ...

Iowans are taxed more lightly than the national average, and at a lower rate than most surrounding states. The corporate income tax collected by the state is much below the national average. Both ...

I n 2022, Iowa confirmed its position as a leader in the state flat-tax revolution by phasing out the nine-bracket progressive income tax and replacing it with what will ultimately be a 3.9 ...

Iowa local governments and business groups say they generally support getting rid of the state’s complicated property tax rollback system, but continue to explore the fiscal toll they would face ...

With Iowa’s 3.8% flat personal income tax rate, that means someone earning $8,500 will be taxed at the same rate as someone with a taxable income over $300,000.