What is Iowa Income Tax? Rates & Tax Brackets

Updated for tax year 2025.

If you live in Iowa, or if you are a nonresident or part-year resident with Iowa-source income, you may need to file an Iowa state income tax return along with your federal return. Iowa uses a flat income tax system, so the same rate applies to your taxable income regardless of filing status.

This guide explains Iowa’s 2025 income tax rate, standard deduction, available exemptions and credits, school district surtax, and the updates for the current tax year. When you’re ready to file, TaxAct® automatically applies Iowa’s tax rules to help you accurately prepare your Iowa return alongside your federal return.

What is the Iowa state income tax?

Iowa state income tax is a tax on income earned by individuals. It is collected by the Iowa Department of Revenue and helps fund state services.

Iowa taxes individual income at a flat rate rather than using progressive brackets. For tax year 2025, the Iowa individual income tax rate is 3.8% on all taxable income. Iowa taxable income generally starts with federal taxable income, with Iowa-specific additions and subtractions applied on Form IA 1040.

Iowa income tax rates and tax brackets

Beginning Jan. 1, 2025, Iowa’s standard individual income tax rate is a flat 3.8% of Iowa taxable income, regardless of filing status. Read up on Iowa tax changes for 2025.

Filer Type	Tax Rate
Single	3.8%
Married Filing Separately	3.8%
Married Filing Jointly	3.8%
Head of Household	3.8%

If you need more information on how federal tax brackets work, you can use our tax bracket calculator for federal taxes.

Iowa standard deduction rules

Iowa does not have a separate state standard deduction for tax year 2025. Instead, Iowa generally starts with your federal taxable income, which already reflects the standard deduction or itemized deductions you claimed on your federal return.

Iowa Form IA 1040 also asks you to report your federal standard deduction or itemized deductions from Form 1040, line 12e. This amount is used for certain Iowa-specific calculations, including the low-income exemption, alternate tax calculation, and tax reduction.

Iowa exemptions, deductions, and credits

Iowa offers several deductions and credits that may reduce what you owe. Common items include:

Iowa Earned Income Tax Credit — a refundable credit equal to 15% of the federal earned income tax credit you qualify for.
School Tuition Organization Tax Credit — a nonrefundable credit equal to 75% of qualifying contributions to certified school tuition organizations, claimed on Form IA 148.
College Savings Iowa or Iowa Advisor 529 Education Savings Plan deduction — deduct contributions up to $5,800 per beneficiary on Schedule 1, line 14.
Iowa alternate tax computation — certain filers, including many head of household taxpayers age 65 and older, may owe less tax using the alternate tax worksheet instead of the standard 3.8% calculation.

For a full list of Iowa income tax credits, exemptions, and subtractions, see the Iowa Department of Revenue.

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 you owe is calculated by multiplying the amount on IA 1040, line 18, by the surtax rate for your school district. Your applicable school district is generally the district where you lived on the last day of the tax year.

Example: If the amount on your IA 1040, line 18, is $1,000 and your school district has a 10% surtax rate, your school district surtax would be $100.

Iowa state income tax filing deadlines 2025

The State of Iowa government has issued the following guidance concerning income tax filing deadlines and extensions:

The state tax filing due date for 2025 Iowa income tax returns is April 30, 2026.
Interest and penalties may apply to tax that isn’t paid on time. Keep in mind that filing and paying by April 30 doesn’t necessarily prevent an underpayment penalty if you were required to make estimated tax payments during the year.
Iowa does not require you to file a separate extension form. If you’ve paid at least 90% of your Iowa tax liability by April 30, 2026, you’ll generally receive an automatic extension to file your return. Keep in mind that an extension gives you more time to file, not more time to pay, so interest may apply to any unpaid tax after the original due date.

Iowa tax changes for 2025

Iowa moved to a flat 3.8% individual income tax rate for tax year 2025, replacing the progressive bracket system used in 2024.
Iowa does not have a separate state standard deduction for tax year 2025. Instead, Iowa generally starts with federal taxable income, which already reflects the standard deduction or itemized deductions claimed on your federal return.
Married taxpayers can no longer file separately on a combined Iowa return.
College Savings Iowa and Iowa Advisor 529 contributions moved to a dedicated line on Schedule 1 (line 14), with a deduction limit of $5,800 per beneficiary.
Iowa conforms with selected federal Working Families Tax Cut Act (One Big Beautiful Bill or OBBB) provisions, including no tax on tips, no tax on overtime, no tax on car loan interest, and the enhanced deduction for seniors.

FAQs

Does Iowa have a state income tax?

Yes, Iowa has a state income tax.

What is the Iowa income tax rate?

Iowa’s individual income tax rate is 3.8% for tax year 2025. Because Iowa now uses a flat tax, the same rate applies regardless of your income level or filing status.

What are the Iowa income tax brackets for 2025?

Iowa does not have income tax brackets for tax year 2025, as Iowa uses a flat rate of 3.8% for all filers. See the Iowa income tax rates table above for more details.

How does Iowa state income tax work?

Iowa state income tax generally starts with your federal taxable income on Form IA 1040. You then apply Iowa additions and subtractions on Schedule 1 to arrive at Iowa taxable income, and Iowa applies its flat 3.8% rate to that amount. Credits such as the Iowa Earned Income Tax Credit may further reduce your tax or increase your refund. Iowa residents may also owe a school district surtax based on where they live.

Do I have to file an Iowa state tax return?

You may need to file an Iowa state tax return if you are an Iowa resident, part-year resident, or nonresident with Iowa-source income and you meet Iowa’s filing requirements. Iowa’s due date for tax year 2025 returns is April 30, 2026. Check Iowa Department of Revenue guidance for your situation.

What is the Iowa standard deduction for 2025?

Iowa does not have a separate state standard deduction. Instead, Iowa generally starts with your federal taxable income, which already reflects the standard deduction or itemized deductions you claimed on your federal return.

How much is Iowa state income tax?

There isn’t one Iowa state income tax amount that applies to everyone. How much Iowa state income tax you owe depends on your Iowa taxable income, Iowa additions and subtractions, credits, and any school district surtax that applies. Iowa applies a flat 3.8% rate to Iowa taxable income after those adjustments.

Why is my Iowa tax return different from my federal return?

Iowa generally uses federal taxable income as a starting point and follows rolling conformity with the Internal Revenue Code, so many provisions of the Working Families Tax Cut Act (One Big Beautiful Bill or OBBB) may flow through to your Iowa return automatically. However, Iowa requires its own additions and subtractions on Schedule 1, offers alternate tax calculations for certain filers, and may treat some federal deductions differently. As a result, your Iowa taxable income, deductions, or credits may differ from your federal return.

The good news is that our tax software automatically applies Iowa’s current tax rules when preparing your state return, so you don’t have to calculate these differences yourself.

For more information on Iowa tax law, visit the Iowa Department of Revenue. If you’d like to learn more about recent federal tax law changes, see our OBBB tax changes guide.

The bottom line

Iowa has a flat state income tax rate of 3.8% for tax year 2025. Your Iowa taxable income typically starts with federal taxable income and includes certain Iowa-specific adjustments. Knowing how Iowa treats deductions and credits, whether a school district surtax applies, and when your return is due can help you better understand what you may owe or receive as a refund.

When you’re ready to file, TaxAct can help you prepare your federal and Iowa returns in one place so you can file with confidence.

Already filed your taxes and waiting for your refund? Learn more about where your Iowa state tax refund is.

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

All TaxAct offers, products and services are subject to applicable terms and conditions.

The OBBB is now also being referred to by lawmakers as the Working Families Tax Cut Act. You may see one or both names used here, but they refer to the same set of tax changes.

Citations

Iowa Department of Revenue. “IDR Announces 2025 Individual Income Tax Brackets and Interest Rates.” Accessed 21 Aug. 2026.
Iowa Department of Revenue. “Summary of Tax Year 2025 Form Changes.” Accessed 21 Aug. 2026.
Iowa Department of Revenue. “2025 Expanded Instructions.” Accessed 21 Aug. 2026.
Iowa Department of Revenue. “Impact of One, Big, Beautiful Bill Act on Employee Withholding.” Accessed 21 Aug. 2026.
Internal Revenue Service. “2025 Instructions for Form 1040.” Accessed 21 Aug. 2026.
TaxAct. “Working Families Tax Cuts Act: 2025 Tax Reform Explained.” TaxAct Blog.
TaxAct. “Where’s My Iowa State Tax Refund?” TaxAct Blog.

« What is Michigan Income Tax? Rates & Tax Brackets

Tags: Filing StatusState TaxesTax DeductionsTax RefundUpdated for tax year 2025

Meghen Ponder: Meghen Ponder is an editorial writer for TaxAct who specializes in writing content about finance and taxes. She enjoys decoding the intricacies of the tax world and helping others answer their tax questions.