Iowa Income Tax
Iowa has a flat income tax with a rate of 3.8%. All taxable income is taxed at the same rate regardless of how much you earn.
Iowa Sales Tax
The state sales tax rate in Iowa is 6%. With an average local sales tax of 0.94%, the combined average sales tax rate is 6.94%.
Iowa Property Tax
The effective property tax rate in Iowa is 1.52%. With a median home value of $181,200, the median annual property tax bill is $2,522 ($210/month).
Property taxes in Iowa are significantly higher than the national average, which is an important factor for homebuyers.
Corporate & Business Taxes
The corporate tax rate in Iowa is 5.5-8.4%.
Other Taxes in Iowa
| Tax Type | Rate / Amount |
|---|---|
| Gas Excise Tax | $0.30/gallon |
| Cigarette Tax | $1.36/pack |
| Estate Tax | No |
| Inheritance Tax | No |
Key Facts
Recently moved to a flat tax. Social Security is exempt from state income tax.
Compare to Other States
See how salaries compare on our average salary in Iowa page. Thinking about starting a business? Check our LLC guide for Iowa. See the current minimum wage in Iowa.
Financial Calculators
Plan your finances in Iowa with our free tools:
- Paycheck Calculator — estimate take-home pay after taxes
- Salary Calculator — convert hourly to annual pay
- Mortgage Calculator — estimate monthly home payments
- Home Affordability Calculator — see how property taxes affect what you can afford