Iowa
What's New
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ITEP Work in Action
March 19, 2018Iowa Fiscal Partnership: Passing through a special break
The tax bill that recently passed the Iowa Senate included a provision from the recent federal tax cut bill that provides preferential tax treatment for certain kinds of business income…
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blog
January 12, 2018State Rundown 1/12: Tax Cut Tunnel Vision Threatens to Bore State Budget Holes Even Deeper
As states continue to sift through wreckage of the federal tax cut bill to try to determine how they will be affected, two things should be clear to everyone: the…
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blog
May 17, 2017Investors and Corporations Would Profit from a Federal Private School Voucher Tax Credit
A new report by the Institute on Taxation and Economic Policy (ITEP) and AASA, the School Superintendents Association, details how tax subsidies that funnel money toward private schools are being…
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report
May 17, 2017Public Loss Private Gain: How School Voucher Tax Shelters Undermine Public Education
One of the most important functions of government is to maintain a high-quality public education system. In many states, however, this objective is being undermined by tax policies that redirect… -
ITEP Work in Action
January 10, 2017Iowa Fiscal Partnership: Understanding Iowa Taxes
The Iowa Fiscal Partnership is pleased to distribute a new report by the Institute on Taxation and Economic Policy: The ITEP Guide to Fair State and Local Taxes. We hope… -
ITEP Work in Action
April 6, 2016Iowa Policy Project: $8.9 million revenue boost with immigration reform
“A new report projects a 24 percent increase in state and local tax revenues from undocumented immigrants in Iowa if they were granted permanent legal residence.” Read full report
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ITEP Work in Action
March 6, 2015Iowa Fiscal Partnership: Balanced approach on gas tax
Raising Iowa’s tax on gasoline and diesel fuel by 10 cents per gallon would go a long way toward financing needed street and highway repairs and improvements. Critical needs most… -
ITEP Work in Action
July 7, 2014Iowa Policy Project: Immigrants in Iowa
Undocumented immigrants pay an estimated $64 million in state and local taxes, according to a new Iowa Policy Project report. The authors suggest immigration reform that expands work authorization or… -
ITEP Work in Action
January 15, 2013Iowa Fiscal Partnership: Putting Fairness First: Questions for Financing State and Local Government in Iowa
As state legislators close out the 2008 legislative session and confront the tasks of maintaining commitments and investing in Iowa’s future, they will have to deal with a basic question:…
By the Numbers
| Personal Income Tax Features (2015) | |
|---|---|
| Range of Tax Rates | 0.36% - 8.98% |
| Standard Deduction |
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| Personal Exemption | Credit=$40 |
| Dependent Exemption | Credit=$40 |
| Earned Income Tax Credit (EITC) | 15% Refundable |
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| Corporate Income Tax Features (2015) | |
|---|---|
| Range of Tax Rates | Deduction for federal income taxes paid |
| Income Level at Which Top Rate Applies | Personal exemption is available as a credit |
| Combined Reporting | 6.00% - 12.00% |
| Apportionment Factor (Payroll) | $250,000 |
| Apportionment Factor (Property) | No |
| Apportionment Factor (Sales) | 0% |
| Sales Tax Features (2015) | |
|---|---|
| State Sales Tax Rate | 6.00% |
| Average Local Sales Tax Rate | 0.8% |
| Average Combined State & Local Sales Tax Rate | 6.8% |
| State Sales Tax Treatment of Groceries | Exempt |
| Local Sales Tax Treatment of Groceries | Exempt |
| Number of Services Taxed | 94 out of 168 surveyed (2007) |
| Streamlined Sales Tax Membership | Full |
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| Property Tax Features (2015) | |
|---|---|
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| Other Tax & Revenue Features (2015) | |
|---|---|
| Gasoline Tax Rate (per gallon) | $0.22 |
| Diesel Tax Rate (per gallon) | $0.235 |
| Cigarette Tax Rate (per pack) | $1.36 |
| Estate or Inheritance Tax | Yes |
| Net Lottery Sales Per Capita | $79 (2010) |
| Tax Policy Oversight | |
|---|---|
| Tax Expenditure Report | Yes |
| Tax Incidence Analysis Capability | Personal income tax only |
Last updated January 13, 2015
RESOURCES
State Tax & Revenue Information
Tax Expenditure Reports
- Iowa Tax Expenditures
- Tax Credits Tracking and Analysis Program: 2007 Report to the General Assembly