Iowa Income Tax Guide for 2026
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 $16,100 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) | $16,100 |
| Standard Deduction (Married Filing Jointly) | $32,200 |
Additional Information
- Flat 3.8% rate on all taxable income (SF 2442, 2024), unchanged for 2026
- Iowa taxable income starts from federal taxable income, so the federal standard deduction ($16,100 single / $32,200 married filing jointly for 2026) applies
- Military retirement pay fully exempt
Charts
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Sources
The 2026 figures for Iowa on this page were compiled from the following official government publications:
- IDR Announces 2026 Individual Income Tax and Interest Rates | Iowa Department of Revenue
- Line 02: Federal Taxable Income | Iowa Department of Revenue (IA 1040 Expanded Instructions)
- 2025 IA 1040 Iowa Individual Income Tax Return
- IRS releases tax inflation adjustments for tax year 2026, including amendments from the One, Big, Beautiful Bill | Internal Revenue Service
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