Iowa variant. This is a Iowa-specific version of the Income Tax Calculator, using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Income Tax Calculator.
Iowa income tax (4.4-5.7%, transitioning to flat 3.9% by 2026) stacks on top of federal tax. Understanding both layers is essential to estimating your total Iowa tax bill.
Iowa state income tax structure
Iowa taxes income at 4.4-5.7%, transitioning to flat 3.9% by 2026, with a top marginal rate of 5.7%. Like the federal system, only income within each bracket is taxed at that bracket's rate.
Federal brackets (10%–37%) apply nationwide. Combine your federal effective rate with the Iowa rate to find your true marginal tax on the next dollar earned.
About taxes and housing in Iowa
Iowa is transitioning to a flat individual income tax, replacing its former graduated brackets.
Iowa has above-average property taxes that are administered locally and fund schools and county services.
Iowa's economy is led by agriculture, especially corn and soybeans, along with biofuels, insurance, and advanced manufacturing.
Worked example: state tax on $70,571
Using the 5.7% top rate as a ceiling, state income tax on $70,571 is at most about $4,023; the actual figure is lower after brackets and deductions.
Quick reference
- State income tax: 4.4-5.7%, transitioning to flat 3.9% by 2026
- State sales tax: 6% (plus 0.94% avg local)
- Median home value: $220,000
- Median household income: $70,571
- Effective property tax rate: 1.5%
- Avg auto insurance: $1,322/yr
Frequently Asked Questions
Does Iowa have state income tax?
Yes - 4.4-5.7%, transitioning to flat 3.9% by 2026, topping out at 5.7%.
What is the top tax rate in Iowa?
The top marginal state rate is 5.7%.