Tax rates range from 0.36% to 8.98% with the highest bracket coming into play at $67,230. Single residents have a standard deduction of $1,900, married couples get much more generous $4,760, exemptions are given as a tax credit of $40 per person. Active duty military pay is exempted. Social security and pensions are taxed but a portion may receive an exemption. While not having an estate tax, if you inherit property while living in Iowa you may face high taxes. The exemption is only $25,000 and the inheritance tax rates range from 1% to 15%.
For corporations the tax rates range from 6% to 12%. A biennial report accompanied by a $45 fee must be filed. Sales taxes are 6% with localities adding up to 2% more. Iowa business and tax information can be found at: https://tax.iowa.gov/