
What tax do you pay in Iowa?
Tax year 2026
On a seventy-five-thousand-dollar salary, state income tax in Iowa comes to about 2.98%. Shops charge 6.94% in sales tax as well, once state and local are added up.
Iowa levies an effective state income tax of 2.98% on a single filer at seventy-five thousand dollars. Combined state and local sales tax reaches 6.94% at the representative rate. ⚠️ Both figures are computed rather than quoted, and every input below carries its source and as-of date.
Income tax on $75,000
2.98%
rank 37 of 51
Combined sales tax
6.94%
rank 29 of 51
Iowa charges the same rate no matter how much you earn — about 4 cents of every dollar 3.8% you're taxed on.
Iowa applies a flat about 3.8% state income tax rate for 2026, regardless of income.
| Taxable income | Rate |
|---|---|
| Over $0 | 3.8% |
Shown for Single, Married filing jointly, Head of household, Married filing separately.
Taxable income basis: federal taxable income (federalTaxable).
Sales tax
Iowa's state sales tax is 6%. Add local taxes on top and the real number moves. It ranges from 6.94% in Statewide average up to 7% in Polk County (Des Moines).
State rate: about 6%. Combined with local add-ons, the range across loaded counties runs about 6.94% (Statewide average) to about 7% (Polk County (Des Moines)).
| Category | Treatment |
|---|---|
| Groceries | Exempt (0% of the combined rate) |
| Prescription drugs | Exempt (0% of the combined rate) |
| Clothing | Full rate (100% of the combined rate) |
Property tax
Iowa taxes property heavily. The effective rate is 1.39% of what a home is worth, which ranks 10 nationally. Only a handful of states ask more.
Iowa's effective property tax rate is about 1.39% of market value, ranking 10 nationally — inside the top decile, against an unweighted mean across the fifty-one jurisdictions of about 0.94%.
A typical home here is worth $208,000.00, and the typical yearly bill is $2,897.00. Put the same $440,600.00 house here and it would cost $6,137 $6,136.68 a year to hold. That is money you pay every year you own it, not once.
Median owner-occupied home value is $208,000 with a median annual real estate tax of $2,897. Applying this state's effective rate to the site's reference price of $440,600 gives $6,137 a year — the two figures answer different questions, since the median bill blends the rate with local price levels while the reference bill isolates the jurisdiction. This is an effective rate, tax paid divided by market value, and not a nominal millage against an assessed value; the two are different quantities. A statewide ratio of medians also describes no particular address, so an individual county or property can sit well away from it.
US Census Bureau ACS 5-Year Estimates, tables B25103 (Median Real Estate Taxes Paid) and B25077 (Median Value, owner-occupied). ACS 5-year estimates covering 2020–2024, so the as-of date (2024-12-31) is the end of the estimation window rather than a measurement date. Last verified 2026-08-29.
Other costs to know about
Buying a home in Iowa means paying a real estate transfer tax. On a $440,600.00 home — the national median — that comes to about $705 $704.80.
Real estate transfer tax on a $440,600 home (NAR's June 2026 national median): $705 $704.80.
Source: Iowa Code §428A.1 — $0.80 per $500 of value above a $500 exemption, in effect since 1991, as of 2025-01-01.
Registering a car in Iowa adds fees. Expect about $180.00 in dealer paperwork and about $197.00 to register it.
Vehicle fees: dealer doc fee $180.00, registration $197.00.
Statutory fee amounts, not the full cost of ownership — see the calculator above for insurance, maintenance and fuel.
Stay in a hotel in Iowa and the state adds about 5% to the room rate. Cities and counties add their own on top, and that part is often the bigger one.
State-level lodging tax: about 5%, combining the state lodging levy, sales tax where it reaches rooms, and any statewide assessment.
The state's own share only. Local occupancy taxes are set by cities and counties and are excluded here.
Every phone line in Iowa carries a $1.00 monthly charge for emergency services. It is a flat amount per line, so it costs a family with several phones more than the rate on the bill suggests.
State emergency-services surcharge: $1.00 per line per month, levied as a fixed charge rather than as a share of the bill.
Counties may levy their own emergency-services charge on top, and wireless bills carry further federal and state surcharges.
Leasing a car in Iowa is taxed up front on the whole value of the car, not month by month. That lands as a large bill at signing rather than a little each month.
Vehicle leases are taxed up front on the full value rather than on the payment stream, so the liability crystallises at inception.
No local rate applies to a lease here.
Iowa also has local (city or county) income taxes in some places.
Local income tax coverage: complete.
All 737 Iowa county/school-district pairs are included. Many districts levy 0%, and those are modeled as real zeroes rather than omitted.
At a $75,000 salary, Iowa's state income tax works out to an effective rate of about 2.98% — roughly $2,240 a year — which is lower than most states' effective income tax rates (37th of 51) among all 51 jurisdictions we track (50 states plus DC). The combined state and local sales tax rate in Statewide average is 6.94%, close to the middle nationally (29th of 51) — on a $40,000 car purchase, that's about $2,780 in sales tax alone, on top of whatever income tax was already paid to earn the money in the first place. Iowa draws on both income and sales tax, unlike the handful of states that forgo one or the other entirely — so both layers matter when pricing out a purchase here, and neither one alone tells the whole story. Every purchase priced out on this site for Iowa uses these same verified, cited, Iowa-specific figures for both layers — never a national average quietly standing in for the real number.
What lands in your account
A $75,000 salary
| Take-home, year | $59,354 |
|---|---|
| Tax, year | $15,646 |
| Share of pay taxed | 20.86% |
This is an average rate across all your pay — not the rate on your next dollar.
Where the money goes
A $75,000 salary
- Federal income tax$7,670
- Social Security and Medicare$5,738
- State income tax$2,238
- Yours$59,354
| Federal income tax10.23% | $7,670 |
|---|---|
| Social Security and Medicare7.65% | $5,738 |
| State income tax2.98% | $2,238 |
| Yours79.14% | $59,354 |
How this state ranks, at this income
A $75,000 salary
| Take-home in Iowa | $59,354 |
|---|---|
| Rank once local prices are leveledBEA price parity | 7th of 51 |
| Most take-home at this income | South Dakota · $61,593 |
| Best once prices are leveled | South Dakota |
State income tax only — no city or county income tax is applied to any state here.
Property tax on a home here
A $75,000 salary
| State effective rate | 1.39% |
|---|---|
| Median home in this state | $208,000 |
| Median tax actually paid | $2,897 |
| Rate rank, highest first | 10th of 51 |
| Pay needed to cover it | $4,353 |
A statewide average effective rate. Your town, county and school district set the real bill.
Explore more about pay, taxes and comparisons in Iowa
What changed in Iowa
A $75,000 salary
No tax law changes recorded for this state in this period.
Iowa against Texas
A $75,000 salary
| Measure | Iowa | Texas |
|---|---|---|
| Take-home pay | $59,354 | $61,593 |
| Worth after local prices | $66,865 | $63,383 |
| Share of pay taxed | 20.86% | 17.88% |
| State sales tax | 6% | 6.25% |
| Groceries exempt here | Yes | Yes |
| Clothing exempt at $100 | No | No |
| Property tax rate | 1.39% | 1.49% |
| Price level | 88.8 | 97.2 |
| Housing prices | 66 | 97.4 |
| Fuel tax | 30¢ | 20¢ |
| Tobacco tax | $1.36 | $1.41 |
City income tax excluded. Sales-tax row: state-only. Exemptions: Iowa, Statewide average; Texas, Harris County (Houston). Clothing: one $100 item; higher prices can change tax.
What you would need there
A $75,000 salary
| To match take-home only | $71,818 |
|---|---|
| Raise you would need | +$4,810 |
| Prices in Texas | 97 vs 89 |
State taxes and state price levels only. No city tax, and no housing market.
Every state, at your income
A $75,000 salary
| Best to worst | $6,012 |
|---|---|
| Behind the best | $2,238 |
| Best at this income | South Dakota |
State income tax only. Each dot is one state's take-home on this salary.
The three taxes you meet
A $75,000 salary
- Income tax20.86%
- Sales tax$1,068
- Property tax$4,178
| Income tax paid | 20.86% |
|---|---|
| Sales tax, on that spending | $1,068 |
| Property tax, on that home | $4,178 |
Three different bases, so never summed. Assumes 30% of take-home spent taxably, on a $300,000 home.
Property tax, against the country
A $75,000 salary
| Lowest in the country | 0.27% |
|---|---|
| Highest | 2.11% |
A statewide average effective rate. Your town and school district set the real bill.
When you start earning for yourself
A $75,000 salary
- To income tax · 77 days
- Yours · 288 days
| Share of pay taxed | 20.86% |
|---|
Your income tax, restated as time. Not the national figure, which counts every other tax too.
What no income tax costs instead
A $75,000 salary
- Income
- Sales
- Property
| Income tax saved | $2,238 |
|---|---|
| Sales and property added | $0 |
| States with none | 9 |
Against the average of the states with no income tax. Stated assumptions: 30% spent taxably, a $300,000 home.
Price something out in Iowa
Adjust assumptions
to cover an air conditioner
$535 invested upfront, assuming 7% a year. Includes your starting money and its growth. An illustration, not a forecast; investment growth is separate from the purchase cost above.
- Income tax (federal, FICA, state)33%$269
- Sales tax4%$35
- Air conditioner62%$500
- Income tax (federal, FICA, state)
- Sales tax
- Air conditioner
Data for nerds — sources, confidence and assumptions
Data for nerdssources, confidence, assumptions
Where each number comes from
| Component | Amount | Confidence |
|---|---|---|
| Item price | $500.00 | Your figureHigh confidence. You supplied this, so it is exact by definition. |
| Sales tax | $34.70 | JurisdictionalMedium confidence. The right jurisdiction, but special districts within it can vary — bounded, and we know the range. |
| Income tax to earn it | $268.75 | StatutoryHigh confidence. This number is the law — federal, FICA and state tax rates are published rates, so the only real risk is staleness. |
Jurisdiction applied
- State:
IA - Sales tax county:
Statewide average - Local income tax: none selected
Assumptions
- We use the normal sales tax rate.
- The electricity to run it is left out. Over the life of the unit that usually costs more than the unit did.
- Sales tax applies at the standard rate.
- Electricity to run it is excluded and typically exceeds the purchase price over the unit's life.
Sources
Your position in the tax system
33.45% on the next dollarEvery extra dollar you earn is taxed at your marginal rate, not your average one — which is why a purchase costs more to fund than a paycheck stub suggests.
Marginal rates are read in gross-income terms: below the standard deduction an extra dollar of pay adds nothing to taxable income, so the true rate there is 0%, not the lowest bracket's. Excludes pre-tax deductions (401(k), HSA), which would lower all three.
Same purchase, different state
IA is #20 of 51The purchase inputs and income stay the same. Your row uses your calculator settings; other states use example counties and omit local income tax. Spread across all 51: $173, from New Hampshire to California.
- $711
- Iowayou$803
- $884
Choose a state name to compare against somewhere else.
Where every dollar goes
33% never reaches youThe $803.45 you must earn, followed to where it lands. Select a band to isolate it.
- Federal income tax$176.76
- FICA (Social Security + Medicare)$61.46
- IA income tax$30.53
- Air conditioner$500.00
- Sales tax$34.70
Each tax layer is the extra tax this purchase causes — that layer's tax at your income subtracted from its tax at your income plus the gross-up — so bracket boundaries the purchase straddles are handled correctly rather than smoothed over with an average rate.
Is a raise actually a raise?
you keep 67%A raise arrives on top of everything you already earn, so it is taxed at your marginal rate — not the average rate on your whole salary.
Federal, FICA, state and any local income tax — no pre-tax deductions, benefit changes, or payroll withholding quirks, all of which move the real figure. Moving into a higher bracket never taxes the income below the threshold: only the dollars above it pay the higher rate.
Every purchase we model
Browse all 91 purchase categories
Questions people ask
A flat rate on what, exactly — before or after deductions?
On what is left after deductions and exemptions, not on your gross pay. That is why the slice that actually leaves is smaller than the about 3.8% on the label.
Is what comes out of my paycheck the same as what I owe?
Usually not. Your employer withholds an estimate based on a form you once filled in; the return settles the real number. That difference is the refund or the bill.
Why is there a second income tax on my paycheck here?
Because a city, county or school district can levy its own on top of the state's, and in Iowa some do. It is a separate tax with its own rate and its own boundary on the map, so moving house can change it even when your job does not.
I live here but work in another state. Who taxes me?
With an agreement in place, the home state takes it. Iowa holds 1 of them. You still have to give your employer the exemption form, or the wrong state keeps withholding all year.
Why is the sales tax I pay higher than the state rate?
Because the state rate is only the first layer. Counties, cities and special districts add their own on top, so the about 6% on the statute becomes about 6.94% at the register — and it changes street by street.
My property tax is a rate on a value nobody asked me about. Where does that value come from?
From an assessor, on a schedule the county sets. Your bill is that value times about 1.39%, which sits above the about 0.94% national mean — and a reassessment alone can raise it.
Does the sales tax holiday take the tax off everything?
No. A holiday covers named categories, for named dates, usually with a price cap on each item — so the same shop can ring up one item tax-free and the next one taxed. Local add-ons do not always come off either.
What base does a flat state income tax rate apply to?
A flat rate applies to state taxable income, not gross income. Iowa levies about 3.8% on the base remaining after its own deductions and exemptions, which is why the measured effective rate is about 2.98%.
Does state withholding equal actual state liability?
Withholding is a prepayment computed from the allowances declared on a withholding certificate, not a liability calculation. Actual liability is determined on the annual return; the difference is refunded or collected. Neither over- nor under-withholding changes the amount owed.
How do local income taxes interact with the state income tax?
Municipal, county or school-district income taxes in Iowa are levied independently of the state. Rates, bases and residency rules are set locally, and liability commonly follows both residence and place of work, so a boundary crossing can create two claims on the same income. Coverage in this engine is complete for every levying jurisdiction.
How does a reciprocity agreement allocate taxing rights?
Iowa maintains 1 reciprocity agreement(s). Where one applies, wages are taxable only by the state of residence, and the employee files a non-residence certificate with the employer to suspend work-state withholding. Absent that certificate, withholding continues and recovery requires a non-resident return.
What composes a combined sales tax rate?
The combined rate is the sum of the state levy and every local levy sourced to the point of sale. In Iowa the state component is about 6% and the representative combined rate is about 6.94%; county, municipal and special-district add-ons vary within the state, so a single statewide figure is an approximation.
How is the assessed value underlying a property tax bill determined?
Liability is assessed value × the applicable millage. Assessment methodology, cycle and any ratio or cap are set by the taxing jurisdiction, not by transaction price. Iowa's statewide effective rate is about 1.39% against a national mean of about 0.94%, so reassessment has a larger absolute effect here than the rate comparison alone suggests.
What limits apply during a sales tax holiday?
Holidays are enumerated exemptions bounded by category, date range and per-item price ceiling. Items outside the enumerated categories, or above the ceiling, remain fully taxable. Local participation is not automatic in every state: where it is optional, the state component is exempted while local components continue to apply.