Iowa (IA) Tax Rates — 2026
Income Tax
3.8%
Sales Tax
6.94%
Property Tax
1.52%
Income Tax
Type: Flat rate — 3.8% on all taxable income
Standard Deduction: Single: $14,600 | Married Filing Jointly: $29,200
Sales Tax
State Rate6%
Avg Local Rate0.94%
Combined Rate6.94%
Groceries: Exempt
+0.37% vs national avg
Property Tax
Effective Rate1.52%
Median Annual Tax$2,522
+0.45% vs national avg (1.07%)
Retirement Income Tax
Social SecurityNO
PensionsEXEMPT
401(k) / IRANO
Estate & Inheritance Tax
Has Estate Tax: NO
Corporate Tax
Corporate Income Tax Rate: 7.1%
Additional Notes
Iowa transitioned to a flat 3.8% income tax rate in 2025. All retirement income is now exempt from state income tax for taxpayers age 55+.
Compare with another state:
Sources: Iowa Department of Revenue; Tax Foundation, Facts & Figures 2025; IRS Publication 17.