Iowa Income Tax Rates 2025
Iowa has a progressive income tax system with 4 brackets ranging from 4.4% to 5.7%. The state has been gradually reducing its rates in recent years as part of a phased tax reform plan.
Tax Type
Progressive
Rate Range
4.4% – 5.7%
Brackets
3
Calculate your full tax picture
Iowa is only part of the equation — federal taxes apply too.
State Tax Ranking
At $75,000 income (single filer), Iowa ranks #41 out of 51 states — where #1 is the lowest tax burden.
Best states to move to from Iowa →Tax at Different Income Levels
| Income | State Tax | Effective Rate | Take-Home |
|---|---|---|---|
| $50,000 | $2,551 | 5.10% | $43,578 |
| $75,000 | $3,976 | 5.30% | $63,075 |
| $100,000 | $5,401 | 5.40% | $81,150 |
| $150,000 | $8,251 | 5.50% | $116,682 |
| $200,000 | $11,101 | 5.55% | $151,832 |
Single filer, standard deduction, 2025 tax year. Take-home is after federal + state income tax (excludes FICA).
2025 Tax Brackets — Single Filer
| Taxable Income | Rate |
|---|---|
| $0 – $6,210 | 4.4% |
| $6,210 – $31,050 | 4.8% |
| Over $31,050 | 5.7% |
2025 Tax Brackets — Married Filing Jointly
| Taxable Income | Rate |
|---|---|
| $0 – $12,420 | 4.4% |
| $12,420 – $62,100 | 4.8% |
| Over $62,100 | 5.7% |
Tax Overview
This state uses a progressive income tax system with multiple brackets, similar to the federal system. Only the income within each bracket is taxed at that rate, so your effective state rate is lower than the top bracket. Tax planning strategies include maximizing pre-tax retirement contributions to reduce state-taxable income.
Tax Planning Tip
In a progressive-bracket state, pre-tax 401(k) and HSA contributions reduce your state tax bill along with federal tax. If you are near a bracket boundary, an additional contribution can drop you into a lower state bracket.
Iowa uses a progressive tax system where higher portions of income are taxed at higher rates. Iowa does not tax Social Security benefits and offers a retirement income exclusion for qualifying taxpayers. The state has been phasing in rate reductions as part of a 2022 tax reform law.
Property Tax & Cost of Living
Property tax rate is the state average effective rate. Actual rates vary by county. COL index from BEA Regional Price Parities.
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Frequently asked questions
What is Iowa's income tax rate in 2025?
Iowa has a progressive income tax with 4 brackets ranging from 4.4% to 5.7%. Your effective rate depends on your total taxable income.
Does Iowa tax Social Security benefits?
Iowa does not tax Social Security benefits at the state level.