Iowa State Taxes

Staff Reports
by Staff Reports

 


Iowa State Tax ― Individual Income Tax

The individual income tax rates for Iowa are as follows:

  • 0.36% on the first $1,407 of taxable income
  • 0.72% on taxable income between $1,408 and $2,814
  • 2.43% on taxable income between $2,815 and $5,628
  • 4.5% on taxable income between $5,629 and $12,663
  • 6.12% on taxable income between $12,664 and $21,105
  • 6.48% on taxable income between $21,106 and $28,140
  • 6.8% on taxable income between $28,141 and $42,210
  • 7.92% on taxable income between $42,211 and $63,315
  • 8.98% on taxable income of $63,316 or more

Iowa State Tax ― Corporate Income Tax

The corporate income tax applies to corporations conducting business in Iowa. The rates are as follows:

  • 6% on the first $25,000 of taxable income
  • 8% on taxable income between $25,001 and$100,000
  • 10% on taxable income between $100,001 and $250,000
  • 12% on taxable income of $250,001 or more

Corporations may have the option to pay a 7.2% minimum tax instead. Financial institutions are subject to a 5% franchise tax (in place of the corporate income tax).

Iowa State Tax ― Sales & Use Tax

Iowa’s state sales tax rate is 6% ― a rate that took effect on July 1, 2008. Local jurisdictions (counties and cities) may also impose a local option sales tax up to 1% in addition to the state tax.

The consumer’s use tax is a component of the sales tax and is imposed (at the same rate) on out-of-state purchases when Iowa sales tax was not properly collected.

Iowa State Tax ― Property Tax

All real property (i.e. real estate) is subject to property tax in Iowa. Tax is administered by various local taxing authorities (counties, cities, towns, and school districts), and most properties are subject to taxation from more than one jurisdiction. For more information about property tax, contact the local assessor’s office(s).

Iowa State Tax Forms

Form IA 1040 (Iowa Individual Income Tax Long Form)
Form IA 1040A (Iowa Individual Income Tax Short Form)
Form IA 1040V (Iowa Individual Income Tax Payment Voucher)
Form IA 1040X (Amended Iowa Individual Income Tax Return)
Form IA 1120 (Iowa Corporation Income Tax Return Long Form)
Form IA 1120A (Iowa Corporation Income Tax Return Short Form)

Iowa State Tax Resources

Iowa Department of Revenue: www.iowa.gov/tax

Iowa Department of Revenue “Electronic Filing Options” center: www.iowa.gov/tax/elf/elfchoic

Iowa Department of Revenue “Electronic Payment Options” center: www.iowa.gov/tax/business/EFilePayPayOptions

Check the status of your Iowa income tax refund online: www.idr.iowa.gov/wheresmyrefund

“Iowa Local Option Tax Information” (sales tax): www.iowa.gov/tax/educate/localoption