Iowa state taxes at a glance
| Individual income tax | Flat-rate income tax |
|---|---|
| Rate structure | A flat 3.8% rate on all taxable income for 2026, according to the Iowa Department of Revenue. Iowa recently moved from graduated brackets to a single rate. Verify current-year figures. |
| Tax agency | Iowa Department of Revenue |
| Main individual return | Form IA 1040 (all filers; nonresidents and part-year residents also complete the nonresident/part-year schedule in the instructions) |
| Local income taxes | No countywide income tax, but many school districts levy a surtax on state income tax, which Tax Foundation counts as a small average local income tax. |
| Sales tax | A 6% state rate plus an optional local option tax of up to 1%, so combined rates range from 6% to 7%. |
| Property tax | Assessed locally. Iowa limits how fast the taxable value of residential property can rise through a statewide rollback formula; check your county assessor for the current factor. |
| Retirement & Social Security | Iowa does not tax Social Security. Retirement income can be excluded if you are 55 or older, disabled, or a qualifying surviving spouse. |
Verify current-year figures: state rates, brackets, credits and filing rules change. Treat this page as a starting orientation and confirm details on the Iowa Department of Revenue website.
How Iowa income tax works
Iowa’s Department of Revenue announced a flat 3.8% individual income tax rate on all taxable income for 2026, and Tax Foundation’s 2026 table lists Iowa as a single-rate state. This is a big change from the old multi-bracket system, and it makes estimating state tax simpler: after deductions and credits, your taxable income is multiplied by 3.8%. Iowa also adopted its own standard deduction tied to the federal amount and credits (Tax Foundation shows Iowa using the federal standard deduction and modest per-person credits instead of exemptions).
The state’s retirement exclusion is the biggest benefit for older residents. Iowa’s guidance says eligible retirement income from IRAs, 401(k)s, pensions, annuities and deferred-compensation plans can be excluded from Iowa taxable income if you are 55 or older, disabled, or a qualifying surviving spouse or survivor. Social Security is not taxed by Iowa. For a deeper look at the federal side of benefits taxation, see is Social Security taxable?
Iowa also has school-district surtaxes that some filers pay on top of state tax, and local option sales taxes of up to 1%. Property tax relief comes through a rollback that limits how fast the taxable value of residential property can rise, and through credits for older or low-income owners and renters; the Department and your county assessor administer them. Iowa has an income tax reciprocity agreement with Illinois, so Illinois residents who work in Iowa generally owe Illinois tax only.
Filing your Iowa return and free options
Iowa’s normal due date for individual returns is April 30, a deadline that differs from the federal April 15, so check the Department’s date for the year you are filing. The Department’s “File for FREE” page describes free federal and Iowa e-filing through IRS Free File providers (with income and age limits) and through the state’s other free options; the Department’s online account system, GovConnectIowa, handles payments, notices and refund status.
If you cannot pay in full, contact the Department about a payment plan, and read our what to do if you can’t pay guide. For federal free filing options, see our free filing hub.
For the federal side, see our guides to free federal filing options and the complete guide to filing taxes.
Things Iowa residents often ask about
- April 30 deadline: Iowa’s regular individual due date is later than the federal date; confirm yearly.
- Retirement exclusion: available at 55 or older, or for disability or a qualifying survivor; keep your 1099-R forms.
- School district surtax: some districts add a surtax calculated on your state tax; the return has a schedule for it.
- Illinois reciprocity: Illinois residents working in Iowa file in Illinois only, per Tax Foundation’s reciprocity table.
- GovConnectIowa: a single online account for payments, notices and refund status.
Official Iowa links
- Iowa Department of Revenue
- Iowa: file for free
- Iowa: retirement income tax guidance
- Federation of Tax Administrators: State tax agencies
Frequently asked questions
What is the Iowa income tax rate?
Iowa uses a flat 3.8% rate on all taxable income for 2026, according to the Department of Revenue.
When is the Iowa tax return due?
The regular due date for individual returns is April 30. Confirm the date for the year you are filing on the Department’s website.
Does Iowa tax Social Security or retirement income?
Iowa does not tax Social Security, and eligible retirement income can be excluded if you are 55 or older, disabled, or a qualifying survivor.
General information only — not tax, legal or financial advice. Tax figures change every year; verify the current numbers at IRS.gov or with a qualified professional. Read the full disclaimer.