Iowa

What's New



By the Numbers

Personal Income Tax Features
Range of Tax Rates 0.36% - 8.98%
Standard Deduction
  • $1,950 ($4,810 for Married Couples)
  • Personal Exemption Credit=$40
    Dependent Exemption Credit=$40
    Earned Income Tax Credit (EITC) 15% Refundable
  • Notable Capital Gains Preference
  • Deduction for federal income taxes paid
  • Personal exemption is available as a credit
  • Corporate Income Tax Features
    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
    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
  • Sales tax holiday offered in 2014
  • Property Tax Features
  • Taxable value of property cannot increase more than 4% annually
  • Utilizes split roll system.
  • Levies a car tax.
  • Other Tax & Revenue Features
    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