Iowa Tax Guide 2026

Iowa Income Tax Overview

Iowa has a Flat 3.8% rate as of 2026 (reducing). When combined with federal income tax and FICA taxes, Iowa residents in the median income range of $65,429 typically face a combined effective tax rate of approximately 31% on their gross income. The state income tax is calculated on taxable income after the federal standard deduction of $16,100 (single) or $32,200 (married filing jointly) for 2026.

Iowa Sales Tax Rate 2026

Iowa's combined sales tax rate is 6.00%, which includes a state rate plus an average local rate. On a $100 purchase, you pay $6.00 in sales tax — and $30.00 on a $500 purchase. Rates can vary within the state based on county and city jurisdiction.

Property Taxes in Iowa

Iowa homeowners pay an effective property tax rate of 1.37% annually. On the Iowa median home price of $215,000, that means approximately $2,946 per year — or $246 added to your monthly mortgage payment. Iowa's property tax rate is near the national average of 1.07%.

Total Tax Burden for Iowa Residents

When calculating the total tax burden for a Iowa household earning $65,429 annually, you must add: federal income tax (approximately $7,851), FICA taxes (7.65% = $5,005), Iowa state income tax (approximately $2,611), and property taxes if you own a home. Use the specific calculators above to get your exact personalized numbers based on your income, filing status, and situation.

Tax Tips for Iowa Residents in 2026

• Maximize your 401(k) to $24,500 — reduces both federal AND Iowa state income tax
• HSA contributions are deductible from both federal and state income tax in Iowa
• Check if Iowa has its own standard deduction (some states have lower amounts than federal)
• The 2026 OBBBA tip and overtime deductions apply at federal level — check Iowa conformity