The Kiplinger Tax Map: Guide to State Income Taxes, State Sales Taxes, Gas Taxes, Sin Taxes
Tool | Updated October 2019

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.

Iowa

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The Bottom Line
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Which do you think is higher in Iowa: the corn or taxes? It might be taxes, thanks to above average income and property taxes in the state. One reason why income taxes are on the high end in the state is because over 200 school districts and Appanoose County add their own income taxes on top of the state-level tax. The average property tax rate in the Hawkeye State is the 12th-highest in the nation. For a $400,000 home in the state, the owners can expect to pay about $6,711 per year in property taxes. That certainly doesn’t help homeowners in Iowa.

Income taxes are slated to drop in 2023, assuming revenue estimates are met.

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)

In 2019: Low: 0.33% (on up to $1,638 of taxable income) High: 8.53% (on taxable income over $73,710). Iowa also has local income surtaxes used for schools and emergency services; the average rate is 0.22%, according to the Tax Foundation.

Residents can deduct federal income taxes on their state return.

Effective tax rate: 4.43% for single filers, 7.03% for joint filers.

Motor Fuel Taxes

Gasoline: $0.3050 per gallon.
Diesel: $0.3250 per gallon.

Property Taxes

In Iowa, residents pay an average of $1,678 in taxes per $100,000 of assessed home value.

Vehicle Taxes

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

Sin Taxes

Cigarettes and little cigars: $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.

Taxes On Wireless Service

9.16%

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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