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
At $75,000 income (single filer), Iowa ranks #19 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 | $1,900 | 3.80% | $44,229 |
| $75,000 | $2,850 | 3.80% | $64,201 |
| $100,000 | $3,800 | 3.80% | $82,751 |
| $150,000 | $5,700 | 3.80% | $119,233 |
| $200,000 | $7,600 | 3.80% | $155,333 |
Single filer, standard deduction, 2025 tax year. Take-home is after federal + state income tax (excludes FICA).
Tax Overview
This state uses a progressive income tax system with multiple brackets, similar to the federal system. Only the income within each bracket is taxed at that rate, so your effective state rate is lower than the top bracket. Tax planning strategies include maximizing pre-tax retirement contributions to reduce state-taxable income.
Tax Planning Tip
In a progressive-bracket state, pre-tax 401(k) and HSA contributions reduce your state tax bill along with federal tax. If you are near a bracket boundary, an additional contribution can drop you into a lower state bracket.
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 is the state average effective rate. Actual rates vary by county. COL index from BEA Regional Price Parities.
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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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