Iowa Tax

Iowa State Tax

Iowa Income Tax

Iowa Personal Income Tax

The State of Iowa has the third highest income tax rates in the United States. Like the federal income tax system, Iowa uses a progressive income tax bracket system for individual tax filing. The state marginal income tax rates range from 0.36% to 8.98% depending on the taxable income.

The following individuals are required to file his income tax returns in Iowa:

  1. Resident
    1.1. Single filer with gross income over $9000 a year

1.2 Couples filing jointly with gross income of over $13,500 a year

1.3 Head of Household with gross income of over $13,500 a year

  1. Part-time or non-resident who earned at least $1000 from Iowa sources
  2. Person claimed as dependent of Iowa return; with minimum gross income of $5000 a year

Depending on the county they reside in, most taxpayers also pay for additional income surtax.

Iowa Corporate Income Tax

All corporations that operate or generate income in Iowa must pay state income tax. Companies are charged 6% for the first $25,000 of income. The rates increase progressively until the maximum tax rate of 12% for incomes exceeding $250,000.

Iowa Sales Tax

Iowa collects a base rate of 6% on all purchases of personal properties and services except prescription drugs and groceries. Counties and cities can collect up to 1% additional local sales tax, making the maximum Iowa sales tax rate increase up to 7%. The State of Iowa has 923 special tax jurisdictions that levy additional tax alongside state and county sales taxes. Iowa has higher sales taxes than approximately ¾ of all states.