2010 TaxGrams™
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State and Local Taxes
Iowa State Tax Summary

Iowa state tax summary, including corporate and individual Iowa income taxes, credits, exemptions, deductions and more. Includes Iowa estate, gift and inheritance tax, miscellaneous Iowa taxes, pass-through entity treatment, payroll taxes, property taxes and Iowa sales & use taxes.

Iowa ranks #46 on the State Business Tax Climate Index (TaxFoundation.org).

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    taxmOuth Iowa Taxes

Iowa Tax FAQs

Iowa Tax Forms

Iowa Corporate Taxes

  • taxmOuth Iowa Corporate Taxes
  • Iowa Tax Rates & Brackets:

    6%> $0
    7%> $25,000
    10%> $100,000
    12%> $250,000
  • Loss Carry-back/fwd: 2 Years Back / 20 Years Forward (Unlimited)
  • Throwback Sales?: N
  • Foreign Tax Deductible?: Y
  • Alternative Minimum Tax (AMT): Y
  • Gross Receipts Tax: N
  • Capital Stock (Net Worth) Tax?: N

Iowa Tax Incentives and Credits

  • taxmOuth Iowa Tax Credits
  • Job Credits?: Y
  • R&D Credits?: Y
  • Investment Credits?: Y

Iowa Individual Income Taxes

  • taxmOuth Iowa Individual Income Taxes
  • Iowa tax rates and brackets:

    0.36%> $0
    0.72%> $1,407
    2.43%> $2,814
    4.5%> $5,628
    6.12%> $12,663
    6.48%> $21,105
    6.8%> $28,140
    7.92%> $42,210
    7.8%> $25,441
  • Local Option IT Rate: 0.30%
  • Federal Inc used as Base?: N
  • Standard Deductions: Single $1,750 / Joint $4,310
  • Personal Exemptions/Credits (c): Single $40(c) / Joint $80(c) / Dependent $40(c)
  • Federal Tax Deductible?: Y
  • State Tax Deductible?: Y
  • Alternative Minimum Tax (AMT)?: Y

Iowa Estate, Gift and Inheritance Taxes

Iowa Miscellaneous Taxes

  • taxmOuth Iowa Miscellaneous Taxes
  • Gas Tax: 22.0 cents/gallon
  • Diesel Tax: 23.5 cents/gallon
  • Cigarette Tax: 136.0 cents/20 pack

Iowa Pass-through Tax Treatment

Iowa Payroll Taxes

Iowa Property Taxes

  • taxmOuth Iowa Property Taxes
  • Median Tax Paid on Homes (Rank): $1,492 (#28)
  • Median Value of Homes: $120,700
  • Tax as % of Home Value (Rank): 1.24% (#15)
  • Median Income of Homeowner: $59,291
  • Tax as % of Income (Rank): 2.52% (#27)

Iowa Sales and Use Taxes

  • taxmOuth Iowa Sales and Use Taxes
  • State Rate: 6.00%
  • County & City (Weighted Ave): 0.94%
  • Combined State and Ave. Local Rates (Rank): 6.94% (#24)
  • General Treatment of Services: Many Taxable
  • Gasoline: Exempt
  • Groceries: Exempt

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