Sales Tax
Statewide: 6.0%
Counties can levy an additional sales tax of no more than 1.0%.
Current average sales tax (with local taxes included): 7.0%
Common Exceptions at State Level:
Prescription Medicine: Exempt
Unprepared Foods: Exempt
Vehicle Tax: 5%
Gasoline Tax: 48.40 cents/gallon (Includes all state, local, and federal taxes)
Diesel Fuel Tax: 56.90 cents/gallon (Includes all state, local, and federal taxes)
Personal Income Tax
Personal Income Tax Rate Range: 3.8% (Note: State allows localities to tax income.)
Standard deduction: N/A
Personal Exemption Allowance: $40. Dependent Exemption: $40 (taken as tax credit)
Itemized Deductions Allowed? Yes, subject to limitations
State allows city- and and county-level income tax.
Retirement Income (Note: All retirement income exempt if 55 or older)
Social Security: Exempt
IRAs: Exempt
401Ks/Defined contribution employer retirement plans: Exempt
Private pensions: Exempt
Public Pensions: Exempt
Military Pay
Active Duty Pay: Exempt
Military Retirement Pay: Exempt
Military Disability Pay: Exempt
VA Disability Dependency & Indemnity Compensation Benefits: Exempt
SPB/SSPB/RCSBP: Exempt
Property Tax
Local municipalities average 1.43% of the property's assessed value.
Calculation of assessed value: 100% of fair market value, but can't increase more than 3% annually; assessed every odd-numbered year.
Relief programs for:
Owner-Occupied: May be eligible for reduction of $4,850 of assessed value.
Veterans: Exemption of up to $4,000 if meet certain requirements.
65 and Over: Exemption of $6,500 of taxable value.
65 and Over or Disabled: May be eligible for tax credit of up to $1,000 if meet income requirements. Relief also available for renters.
70 and Over: Up to a $1,000 credit based on income requirements.
Honorably Discharged Veteran: Reduction in assessed value available. Varies by county.
Disabled Veterans/Surviving Spouses: May be eligible for 100% exemption if 100% service-related disability.
Personal Property Tax: Yes. Rates and exemptions vary.
Inheritance & Estate Taxes: None.
Department of Revenue website: https://revenue.iowa.gov
