Iowa Taxes 2025
Complete tax guide and OBBBA calculator for IA residents
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Iowa Tax Overview 2025
State Income Tax
3.8%
Flat rate structure
Combined Sales Tax
6.94%
State 6.00% + Local 0.94%
Avg Property Tax
1.57%
Above average property taxes
💼 Iowa Income Tax 2025
Iowa has a flat income tax rate of 3.8%.
When filing your Iowa state tax return, your income tax liability depends on your taxable income and filing status. Iowa uses a flat income tax structure.
Iowa Income Tax Quick Facts
🛒 Iowa Sales Tax 2025
Iowa's combined average sales tax rate is 6.94%, which includes both state and local components. The state sales tax rate is 6.00%, while local jurisdictions add an average of 0.94%.
Sales Tax Breakdown
💡 Tip: Local sales tax rates vary by city and county. Your actual rate may be higher or lower depending on where you shop.
🏠 Iowa Property Tax 2025
Iowa's average effective property tax rate is 1.57%. Above average property taxes.
Property taxes in Iowa are assessed at the local level by counties and municipalities. Rates can vary significantly between jurisdictions.
Example Annual Property Tax
| Home Value | Est. Annual Tax | Monthly |
|---|---|---|
| $250,000 | $3,925 | $327 |
| $400,000 | $6,280 | $523 |
| $600,000 | $9,420 | $785 |
OBBBA Tax Benefits for Iowa Residents
Iowa residents benefit from OBBBA deductions on federal returns.
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduced several new federal tax deductions that Iowa residents can claim starting with their 2025 tax returns.
Available OBBBA Deductions for IA Residents:
Calculate Your Iowa Tax Savings
Use our free OBBBA calculator to see exactly how much you could save on your 2025 federal taxes as a Iowa resident.
Calculate My SavingsHow Iowa Compares
| Tax Type | IA Rate | US Average | Comparison |
|---|---|---|---|
| Income Tax (Top Rate) | 3.8% | 5.1% | Varies |
| Sales Tax | 6.94% | 7.12% | Below Avg |
| Property Tax | 1.57% | 1.10% | Above Avg |
Frequently Asked Questions
What is the income tax rate in Iowa?
Iowa has a flat income tax with rates of 3.8%. Iowa has a flat income tax rate of 3.8%.
What is the sales tax in Iowa?
The combined average sales tax rate in Iowa is 6.94%. This includes the state rate of 6.00% plus an average local rate of 0.94%.
How do OBBBA deductions benefit Iowa residents?
Iowa residents benefit from OBBBA deductions on federal returns. Iowa residents can claim tips, overtime, auto loan interest, SALT, and senior bonus deductions on their federal returns.
When are Iowa taxes due?
For tax year 2025, Iowa state taxes are due on April 15, 2026, the same date as federal taxes. Extensions may be available if you need more time to file.