Iowa Income Tax Rate History
Iowa's top marginal income tax rate fell from 8.53% in 2021 to 3.80% in 2026, a cut of 4.73%. Iowa replaced its graduated schedule with a single rate in 2025.
6 sourced years, 2 of them from Iowa's own revenue department and the rest from Tax Foundation's dated annual editions. Nothing is interpolated. How the two differ.
Iowa against the national median
One marker per sourced year. Lines join the points to show direction; no value between markers is implied.
Year by year
| Year | Top rate | Structure | Change | Basis | Source |
|---|---|---|---|---|---|
| 2021 | 8.53% | graduated | — | As of 1 January | Tax Foundationprov. |
| 2022 | 8.53% | graduated | — | As of 1 January | Tax Foundationprov. |
| 2023 | 6.00% | graduated | −2.53% | As of 1 January | Tax Foundationprov. |
| 2024 | 5.70% | graduated | −0.30% | As of 1 January | Tax Foundationprov. |
| 2025 | 3.80% | flat | −1.90% | Enacted for the year | Iowa Department of Revenue |
| 2026 | 3.80% | flat | — | Enacted for the year | Iowa Department of Revenue |
Every change
- 2023: cut of 2.53% — 8.53% to 6.00%.
- 2024: cut of 0.30% — 6.00% to 5.70%.
- 2025: cut of 1.90% — 5.70% to 3.80%.
Flat-tax conversion, 2025. Iowa replaced a graduated schedule topping out at 5.70% with a single rate of 3.80%, and has kept a single rate since. A flat rate cuts the top bracket and can raise the rate on the lowest incomes at the same time; this page shows only the top.
What was behind the changes
Iowa's phased flat-tax conversion cut the top rate in stages: 8.53% through 2022, 6% in 2023, 5.7% in 2024, then a single 3.8% rate from 2025.
What this page does not tell you
This is the top marginal rate, not anyone's bill. Only the rate is carried back; Iowa's brackets, standard deduction and exemptions for years before 2025 are not in this dataset. A cut in the top rate can sit alongside a higher bill for most filers.
Only the top marginal rate is carried back. Brackets, deductions and exemptions for years before 2025 are not in this dataset.
Years before 2025 are Tax Foundation's 1 January snapshot; 2025 and 2026 are the rate enacted for the whole year, from the state's own source. Where the two disagree the record carries both figures.
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