Iowa Tax Calculators.
Tax year 2026 income tax rates, brackets, and sales tax for Iowa. Returns for tax year 2026 are generally filed in 2027; source links and last-verified dates are shown below.Tax year 2026 means income earned during calendar year 2026; those returns are generally filed in 2027. State and local sales tax rates can change during the year, so confirm current rules before filing or remitting tax.
Income Tax
Iowa has a flat 3.8% income tax effective 2025. Iowa uses federal basic deductions, ordinary nonrefundable exemption credits ($40 single, $80 joint or head of household, plus $40 per qualifying dependent), the alternate tax and low-income rules. This estimate assumes filers under 65 who are not blind or claimable on another return. Retirement, NOLs, QBI, Schedule 1-A deductions, special Iowa adjustments and other credits are excluded.
| Taxable Income | Rate |
|---|---|
| All taxable income | 3.8% |
Sales Tax
Qualifying food and food ingredients are exempt; candy, soft drinks, prepared food and other excluded categories can be taxable. Qualifying human prescription drugs are exempt. Combined rates shown are population-weighted July 1, 2026 estimates; actual item and local rates vary.
Iowa's 3.8% flat rate has applied since tax year 2025. Filing status, exemption credits and alternate-tax rules affect the estimate.
What is Iowa's income tax rate?
Iowa levies a flat income tax of 3.8% on taxable income for 2026.
Does Iowa tax groceries?
Qualifying food and food ingredients are exempt from Iowa’s 6% state sales tax. Candy, soft drinks, prepared food and other excluded categories can be taxable.
How has Iowa's tax system changed?
Iowa has used a flat 3.8% individual income tax rate since tax year 2025. The ordinary estimate also applies exemption credits, low-income rules and the alternate tax.
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