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Iowa Tax Brackets and Tax Deductions

Iowa State income tax brackets for 2024

The state of Iowa collects income tax from its residents at the same rate regardless of filing status. Here’s a breakdown of the Iowa state tax rates for tax year 2024. 

For married taxpayers filing jointly:

Taxable IncomeTax Rate
$0-$12,4204.4%
$12,421-$62,1004.82%
Over $62,1015.7%

For all taxpayers other than married taxpayers filing jointly:

Taxable IncomeTax Rate
$0-$6,2104.4%
$6,211-$31,0504.82%
Over $31,0505.7%

Iowa tax changes for 2025

Beginning Jan. 1, 2025, Iowa is repealing its tax brackets and will impose a single flat rate of 3.8%, regardless of income and filing status.

Iowa standard tax deduction

Iowa no longer has its own standard deductions and will instead follow the federal standard deduction. Taxpayers must use the same filing status on their Iowa tax return that they used on the federal tax return. Married taxpayers also can no longer file separately on a combined return. Check your Iowa tax refund status.

Iowa School District Surtax

As an Iowa resident, it’s important to understand the school district surtax when dealing with state income taxes. This surtax generates revenue that directly benefits the school district where the taxpayer resides. The amount owed is based on the taxpayer’s total state income tax, which is then multiplied by the surtax rate specific to their district. Each district has a different rate, but all rates fall within the range of 0% to 20%.

Example: If a taxpayer’s total state income taxes are $1,000, and they live in a school district with a 10% surtax, the school district surtax is $100.

This article is for informational purposes only and not legal or financial advice.

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James Frazier: James Frazier is a marketer and writer with professional expertise in finance and taxes. He enjoys bringing clarity to the often complicated realm of tax rules and regulations.