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Iowa
By the Numbers

Iowa Below is a snapshot of key features of Iowa's tax system. (Scroll Down)
State & Local Revenue (FY10)
  • General Revenue, Own-Source (GROS): $19.0 billion
  • General Revenue as a Share of Income: 16.7%
  • Tax Revenue: $11.9 billion
  • Tax Revenue as Share of income: 10.5%
  • Personal Income Tax (Share of Tax Revenue): 23.0% (23 out of 51)
  • Corporate Income Tax (Share of Tax Revenue): 1.6 % ( 42 out of 51)
  • Sales & Excise Tax (Share of Tax Revenue): 33.5 % ( 26 out of 51)
  • Property Tax (Share of Tax Revenue): 34.8 % ( 24 out of 51)
  • Other Taxes (Share of Tax Revenue): 3.0 % (42 out of 51)
Personal Income Tax Features (2012)
  • Range of Tax Rates: 0.36% - 8.98%
  • Standard Deduction: $1,830 ($4,500 for Married Couples) (2011)
  • Personal Exemption: Credit=$40
  • Dependent Exemption: Credit=$40
  • Earned Income Tax Credit (EITC): 7% Refundable
  • Notable Capital Gains Preference
  • Deduction for federal income taxes paid
  • Personal exemption is available as a credit
Corporate Income Tax Features (2012)
  • Range of Tax Rates: 6.00% - 12.00%
  • Income Level at Which Top Rate Applies: $250,000
  • Combined Reporting: No
  • Apportionment Factor (Payroll): 0%
  • Apportionment Factor (Property): 0%
  • Apportionment Factor (Sales): 100%
Sales Tax Features (2012)
  • State Sales Tax Rate: 6.00%
  • Average Local Sales Tax Rate: 0.85%
  • Average Combined State & Local Sales Tax Rate: 6.85%
  • State Sales Tax Treatment of Groceries: Exempt
  • Local Sales Tax Treatment of Groceries: Exempt
  • Number of Services Taxed: 94 out of 168 surveyed (2007)
  • Streamlined Sales Tax Membership: Full
  • Sales tax holiday offered in 2013
Property Tax Features (2012)
  • Taxable value of property cannot increase more than 4% annually
  • Utilizes split roll system.
  • Levies a car tax.
Other Tax & Revenue Features (2012)
  • Gasoline Tax Rate (per gallon): $0.22
  • Diesel Tax Rate (per gallon): $0.235
  • Cigarette Tax Rate (per pack): $1.36
  • Estate or Inheritance Tax: Yes
  • Net Lottery Sales Per Capita: $79 (2010)
Tax Policy Oversight
  • Tax Expenditure Report: Yes
  • Tax Incidence Analysis Capability: Personal income tax only

Last Updated October 4, 2012

Sources & Glossary