Iowa State Tax Guide

Iowa state tax rates and rules for income, sales, property, fuel, cigarette, and other taxes that impact residents.

Iowa state flag for Iowa state tax guide
(Image credit: Getty Images)

Iowa state tax: Overview

Iowa's highest income tax bracket is lower than in many other states, but some residents must pay local income surtaxes in addition to Iowa state income tax. In 2025, Iowa’s individual income tax will drop to a 3.8% single tax rate due to recently signed legislation.

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Cigarettes$1.36 per pack
Other tobacco products50% of wholesale price
Beer$0.19 per gallon
Wine$1.75 per gallon
LiquorState Controlled

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Katelyn Washington
Former Tax Writer

Katelyn has more than 6 years of experience working in tax and finance. While she specialized in tax content while working at Kiplinger from 2023 to 2024, Katelyn has also written for digital publications on topics including insurance, retirement, and financial planning and had financial advice commissioned by national print publications. She believes knowledge is the key to success and enjoys providing content that educates and informs.