Iowa Tax Calculators.
2025 income tax rates, brackets, and sales tax for Iowa. Free calculators with Iowa-specific defaults.Income Tax
Iowa transitioned to a flat income tax of 3.8% in 2026, down from a progressive system. This is the result of major tax reform legislation passed in 2022 that phases in rate reductions over several years.
| Taxable Income | Rate |
|---|---|
| All taxable income | 3.8% |
Sales Tax
Groceries are exempt from sales tax. Prescription drugs are exempt.
Iowa's new 3.8% flat rate is below the national average, a significant improvement from its previous top rate of 8.53% that existed just a few years ago.
What is Iowa's income tax rate?
Iowa has a flat income tax rate of 3.8% as of 2026. This is the result of a multi-year phase-down from a progressive system that had rates up to 8.53%.
Does Iowa tax groceries?
No, groceries (unprepared food) are exempt from Iowa's 6% state sales tax.
How has Iowa's tax system changed?
Iowa passed major tax reform in 2022 that transitioned from a progressive system (4 brackets, top rate 6%) to a flat 3.8% rate by 2026. The reform also reduced corporate rates.