Iowa Income Tax Guide for 2025
Overview
Iowa has a flat income tax rate of 3.8%. Capital gains are taxed as ordinary income. The state offers a standard deduction of $15,750 for single filers.
Income Tax Rates
Single Filers
| Income Range | Tax Rate |
|---|---|
| All income | 3.8% |
Married Filing Jointly
| Income Range | Tax Rate |
|---|---|
| All income | 3.8% |
Capital Gains Tax
Capital gains are taxed at the same rates as ordinary income.
Deductions & Exemptions
| Type | Amount |
|---|---|
| Standard Deduction (Single) | $15,750 |
| Standard Deduction (Married Filing Jointly) | $31,500 |
Additional Information
- Flat 3.8% rate on all taxable income beginning with tax year 2025 (SF 2442, 2024); Iowa no longer has income tax brackets
- Iowa taxable income starts from federal taxable income (IA 1040 line 2), so the federal standard deduction applies - $15,750 single / $31,500 married filing jointly for 2025 under the One Big Beautiful Bill Act
- Military retirement pay fully exempt
Charts
Loading interactive chart...
Sources
The 2025 figures for Iowa on this page were compiled from the following official government publications:
- IDR Announces 2025 Individual Income Tax Brackets and Interest Rates | Iowa Department of Revenue
- Line 02: Federal Taxable Income | Iowa Department of Revenue (IA 1040 Expanded Instructions)
- Summary of Tax Year 2025 Form Changes | Iowa Department of Revenue
- Working Families Tax Cuts - Individuals and workers | Internal Revenue Service
Compare multiple states
Ready to see how federal and state taxes compare for your specific situation? Try our interactive comparison tool.
Start comparingLast updated: September 15, 2026
Found something wrong? Report inaccurate data