The Kiplinger Tax Map: Guide to State Income Taxes, State Sales Taxes, Gas Taxes, Sin Taxes
Tool | Updated October 2018

State-by-State Guide to Taxes

Compare state tax rates and rules — on income, ordinary purchases, gas, sin products, property, and more — across the U.S.


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The Bottom Line
Map of Iowa

Mixed Tax Picture

In the wake of the new federal tax law, Iowa has done a bit of tax reform of its own. For 2019, the changes are relatively modest:

  • An across-the-board rate reduction that reduces the top rate from 8.98% to 8.53%
  • A “decoupling” from federal law that means Iowans won’t be limited in how much local property taxes can be deducted from state returns.

In 2023, assuming state revenues hold up, income taxes will be further reduced, the alternative minimum tax repealed, and the Hawkeye state’s uncommon practice of allowing residents to deduct federal taxes from their state taxes will be repealed.

Sales Tax

6.0% state levy. Localities can add as much as 1%, and the average combined rate is 6.82%, according to the Tax Foundation.

Income Tax Range

Low: 0.36% (on up to $1,598 of taxable income)

High: 8.98% (on taxable income over $71,910) — for 2018.

In 2019: Low: 0.33% (on up to $1,628 of taxable income) High: 8.53% (on taxable income over $73,261) Iowa allows school districts to tax income as well. The average levy statewide is 0.22%, according to the Tax Foundation.

See’s Retiree Tax Map to learn how Iowa taxes Social Security income and other forms of retirement income.

Motor Fuel Taxes

Gasoline: $0.31 per gallon.
Diesel: $0.33 per gallon.

Property Taxes

The median property tax on Iowa's median home value of $132,800 is $1,986.

See’s Retiree Tax Map for details on tax breaks for seniors in Iowa.

Vehicle Taxes

Vehicles are subject to a one-time registration fee of 5% of the sales price.

Sin Taxes

Cigarettes: $1.36 per pack
Snuff: $1.19 per ounce
Other tobacco products: 50% of the wholesale price, not to exceed $0.50 per cigar

Beer: $0.19 per gallon
Wine: $1.75 per gallon
Liquor: $13.07 per gallon
Iowa directly controls the distribution and sale of alcohol. Liquor tax is an estimate by the Distilled Spirits Council of the United States and published by the Tax Foundation.

Travel Taxes

Hotel: In addition to a statewide lodging tax of 5%, municipalities can levy an additional 2% to 7%. These are in lieu of state and local sales taxes

Rental cars: 5%, plus sales tax.

Taxes On Wireless Service


Inheritance and Estate Taxes

Iowa's inheritance tax ranges from 0% to 15%, depending on the amount of the inheritance and the relationship of the recipient to the decedent, with these exceptions: No tax is due on property left to a surviving spouse, stepchildren, lineal descendants (children, grandchildren, etc.) or lineal ascendants (parents, grandparents, etc.), and no tax is due if the estate’s net value is less than $25,000.

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