Iowa Tax Overview
Iowa transitioned to a flat income tax rate of 3.8% in 2026, completing a multi-year reform from its previous progressive system that had rates as high as 8.53%. The state no longer allows the deduction for federal taxes paid, which was eliminated as part of the reform. Iowa has moderate property taxes and a 6% state sales tax.
Iowa Tax Quick Facts (2026)
| Income Tax | flat (top rate: 3.8%) |
| Sales Tax (State) | 6.00% |
| Property Tax (Avg Effective) | 1.47% |
| Median Household Income | $67,684 |
| Capital | Des Moines |
| Population | 3.2 million |
Frequently Asked Questions About Iowa Taxes
Does Iowa have a state income tax?+
Yes, Iowa has a flat income tax system with a top marginal rate of 3.8%.
What is the property tax rate in Iowa?+
The average effective property tax rate in Iowa is approximately 1.47% of assessed home value. On a $300,000 home, that is about $4,410 per year.
What is the sales tax rate in Iowa?+
The state sales tax rate in Iowa is 6.00%. Local jurisdictions may add additional sales tax.
What is the median household income in Iowa?+
The median household income in Iowa is approximately $67,684 per year.
How does Iowa's tax burden compare to other states?+
Iowa's total tax burden depends on income tax, property tax, and sales tax combined. Use the calculator above to compare your specific situation.
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James Whitfield, CPA, MST
James Whitfield is a Certified Public Accountant with a Master of Science in Taxation. He specializes in US federal and state tax calculations and ensures all tax-related tools meet current IRS guidelines. Last updated: April 2026. Uses 2026 tax year data from state revenue departments and IRS publications.