Income Tax
Iowa moved to a flat 3.8% income tax in 2025 after several rounds of rate cuts.
Individual income tax collections
1990–2025Census State Government Tax Collections (FRED IAINCTAX).
Property Tax
The average annual property tax bill in Iowa was approximately $2,542 in 2024, per Tax Foundation data.
- •Property tax bills in Iowa vary significantly by municipality and local mill rates.
Sales Tax
Iowa's state sales tax rate is 6.00%, compared with a U.S. average combined rate of 6.60%.
General sales tax collections
1990–2025Census State Government Tax Collections (FRED IASALESTAX).
| Indicator | Iowa | U.S. |
|---|---|---|
| Sales Tax Rate | 6 | 6.6 |
- •Sales tax policy in Iowa affects consumer prices on most retail goods statewide.
Tax Burden
Iowa's total state and local tax burden was 9.3% of income in 2024, per Tax Foundation estimates.
State tax collections per resident
1990–2025Census tax collections (IATOTLTAX) divided by Census resident population (IAPOP).
| Indicator | Iowa | U.S. |
|---|---|---|
| Tax Burden (% of income) | 9.3 | 11.2 |
- •Iowa's tax burden ranking reflects a combination of income, sales and property taxes.
Tax Revenue
Iowa collected approximately $10.9 billion in state tax revenue in fiscal year 2023.
State tax collections
1990–2025Census Annual Survey of State Government Tax Collections, fiscal years (FRED IATOTLTAX).
- •Iowa's top marginal income tax rate is 5.70%.
