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Iowa Tax Calculators.

2025 income tax rates, brackets, and sales tax for Iowa. Free calculators with Iowa-specific defaults.
Tax Type
Flat
Top Rate
3.8%
Sales Tax
6.0%
Avg Combined
6.94%

Income Tax

Iowa transitioned to a flat income tax of 3.8% in 2026, down from a progressive system. This is the result of major tax reform legislation passed in 2022 that phases in rate reductions over several years.

Taxable IncomeRate
All taxable income 3.8%
Standard Deduction: $2,210 (single) / $5,450 (joint)
Open Income Tax Calculator for Iowa

Sales Tax

Groceries are exempt from sales tax. Prescription drugs are exempt.

State Rate 6.0%
Avg. Combined (with local): 6.94%
Open Sales Tax Calculator for Iowa
How Iowa Compares

Iowa's new 3.8% flat rate is below the national average, a significant improvement from its previous top rate of 8.53% that existed just a few years ago.

Frequently Asked Questions
What is Iowa's income tax rate?

Iowa has a flat income tax rate of 3.8% as of 2026. This is the result of a multi-year phase-down from a progressive system that had rates up to 8.53%.

Does Iowa tax groceries?

No, groceries (unprepared food) are exempt from Iowa's 6% state sales tax.

How has Iowa's tax system changed?

Iowa passed major tax reform in 2022 that transitioned from a progressive system (4 brackets, top rate 6%) to a flat 3.8% rate by 2026. The reform also reduced corporate rates.