Iowa tax burden — broken down.
Iowa’s combined tax burden (income + property + sales) lands at 11.37% on our composite — ranking #24 of 51 jurisdictions. The top marginal individual income tax rate is 3.80%.
Iowa burden, broken into 3 components
| Component | Iowa rate | National median |
|---|---|---|
| Top marginal income | 3.80% | ~5.30% |
| Effective property | 1.57% | ~1.07% |
| State sales tax | 6.00% | ~5.50% |
| Combined composite | 11.37% | ~11.87% |
National medians from CalcFi’s 51-state composite. Top marginal is the headline single-filer rate, NOT the effective rate most households actually pay.
Retirement + Social Security in Iowa
Iowa does NOT tax most retirement income (pensions, IRA / 401(k) distributions). Social Security benefits are NOT taxed by Iowa. Federal taxation of these income sources is unchanged regardless of state.
How Iowa compares
Of all 51 US jurisdictions ranked by combined burden composite, Iowa sits at #24. That places Iowa in the middle of the pack — burden is moderate without being a particular outlier in either direction. For the live cross-state heat map, see the interactive tax burden map.
Iowa metros — local tax overlay
State rates are uniform across Iowa— but local income, property, and sales taxes vary. Click any metro to run the full income tax calculator pre-populated with that city’s local layer.
- Des Moinesproperty 1.50% · pop 0.7Mmedian $67,200 →
- Cedar Rapidsproperty 1.50% · pop 0.3Mmedian $62,400 →
- Davenportproperty 1.80% · pop 0.4Mmedian $52,500 →
More Iowa metros coming as we expand city coverage.
Iowa tax — common questions
What is the Iowa top marginal income tax rate in 2025?
Iowa's top marginal individual income tax rate is 3.80% on the highest bracket.
What is the Iowa effective property tax rate?
Iowa's statewide effective property tax rate is 1.57% of home value (annual). On a $400,000 home that's roughly $6,280/yr. Local variation can be ±0.5pp.
Does Iowa tax retirement income or Social Security?
Iowa does NOT tax most retirement income, and does NOT tax Social Security benefits.
Are there any Iowa-specific tax quirks I should know about?
Iowa allows a federal income tax deduction on the state return (one of only 3 states); inheritance tax phased out as of 2025.
Reviewed by CalcFi Editorial · Source: Tax Foundation State Individual Income Tax Rates (Jan 2025). Last verified 2026-04-19. Methodology at /about/editorial.