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Iowa Income Tax Rates 2025

Iowa has a flat income tax rate of 3.8% on all taxable income. The state completed a multi-year phase-down from nine progressive brackets to a single flat rate effective 2025.

Tax Type

Flat

Rate Range

3.8% flat

Brackets

1

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Iowa is only part of the equation — federal taxes apply too.

State Tax Ranking

#14 of 51 Low tax burden at $75,000 income

At $75,000 income (single filer), Iowa ranks #14 out of 51 states — where #1 is the lowest tax burden.

Best states to move to from Iowa →

Tax at Different Income Levels

Income State Tax Effective Rate Take-Home
$50,000 $1,262 2.52% $44,867
$75,000 $2,212 2.95% $64,840
$100,000 $3,162 3.16% $83,390
$150,000 $5,062 3.37% $119,872
$200,000 $6,962 3.48% $155,972

Single filer, standard deduction, 2025 tax year. Take-home is after federal + state income tax (excludes FICA).

Tax Overview

This state uses a flat income tax rate, meaning the same percentage applies to all taxable income regardless of how much you earn. This simplifies tax planning but means there is no bracket benefit for lower earners. The effective rate is very close to the headline rate after deductions.

Tax Planning Tip

With a flat tax rate, your effective state rate is predictable and consistent. Focus tax reduction on pre-tax contributions (401k, HSA) and any state-specific deductions or credits available.

Iowa applies a single flat 3.8% rate to all taxable income (SF2442, effective 2025). Iowa does not tax Social Security benefits and offers a retirement income exclusion for qualifying taxpayers.

Property Tax & Cost of Living

Property Tax Rate
1.47%
$2,940/yr on $200,000 home
Cost of Living Index
87.8
12.200000000000003% below national average
Median Home Value
$200,000
Housing index: 65.3 (avg = 100)

Property tax rate is the state average effective rate. Actual rates vary by county. COL index from BEA Regional Price Parities by state (2024, all items; national average = 100).

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Frequently asked questions

What is Iowa's income tax rate in 2026?

Iowa has a flat income tax rate of 3.8% on all taxable income, regardless of how much you earn.

Does Iowa tax Social Security benefits?

Iowa does not tax Social Security benefits at the state level.

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