Iowa State Income Tax Rate 2024. Kim reynolds signed a nearly $1 billion tax cut into law wednesday that will lower the state’s personal income tax to a flat rate of 3.8% in 2025. Iowa state tax quick facts.
The state was already transitioning to a 3.9% flat tax by 2026 under a law reynolds signed two years ago. That don’t tax any income, regardless of the source or if you’re retired:
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