Iowa Tax Calculator 2025
Calculate your Iowa state income tax with our comprehensive 2025 calculator featuring the Hawkeye State's progressive tax rates from 0.33% to 8.53%, agricultural tax considerations, and advanced tax planning tools for America's heartland.
Calculate Your Iowa Tax
Enter your income information to calculate Iowa's progressive state income tax with rates ranging from 0.33% to 8.53% plus applicable deductions and agricultural considerations.
Iowa Tax Structure 2025
Iowa operates a progressive income tax system with rates ranging from 0.33% to 8.53%, making it a moderate-tax state in the Midwest. The Hawkeye State also provides various deductions including federal taxes paid and special agricultural considerations.
IA Progressive Tax Brackets (2025)
- 0.33% on income up to $1,743 (single) / $3,486 (married)
- 0.67% on income $1,744-$4,140 (single) / $3,487-$8,280 (married)
- 2.25% on income $4,141-$9,315 (single) / $8,281-$18,630 (married)
- 4.14% on income $9,316-$20,970 (single) / $18,631-$41,940 (married)
- 5.63% on income $20,971-$34,950 (single) / $41,941-$69,900 (married)
- 5.96% on income $34,951-$52,425 (single) / $69,901-$104,850 (married)
- 6.25% on income $52,426-$78,435 (single) / $104,851-$156,870 (married)
- 7.44% on income $78,436-$156,870 (single) / $156,871-$313,740 (married)
- 8.53% on income over $156,870 (single) / $313,740 (married)
Standard Deductions (2025)
- Single: $2,210
- Married Filing Jointly: $5,450
- Married Filing Separately: $2,725
- Head of Household: $3,240
Iowa Tax Benefits and Agricultural Considerations
Iowa provides several valuable tax benefits and credits, particularly for agricultural operations, families, and working individuals. The state's tax system includes unique agricultural provisions and federal tax deductions.
- Personal Exemption: $40 per taxpayer and qualifying dependent
- Federal Tax Deduction: Iowa allows deduction for federal income taxes paid
- Agricultural Income Averaging: Special provisions for farm income fluctuations
- Child and Dependent Care Credit: Credit for qualifying childcare expenses
- Education Credit: Credits for tuition and educational expenses
- Earned Income Credit: Iowa version of federal EIC for qualifying families
- Retirement Income Exemption: Partial exemption for certain retirement income
Iowa Residency and Agricultural Tax Planning
Understanding Iowa residency requirements and agricultural tax planning strategies is important given the state's significant agricultural economy and unique tax provisions for farming operations.
Establishing IA Residency
Iowa considers you a resident if your domicile is in Iowa or you maintain a permanent place of abode in Iowa and spend more than 183 days in the state during the tax year.
Agricultural Tax Strategies
Iowa offers income averaging for agricultural income, special depreciation schedules for farm equipment, and deductions for soil and water conservation practices to support farming operations.
Federal Tax Deduction Planning
Iowa's unique federal tax deduction can significantly reduce state tax burden. Consider timing of federal tax payments and deductions to optimize Iowa tax benefits.
Retirement Income Considerations
Iowa provides partial exemptions for retirement income. Plan retirement withdrawals and Roth conversions to minimize Iowa tax impact while maximizing federal benefits.
Frequently Asked Questions
What are Iowa's income tax rates for 2025?
Iowa has progressive income tax rates ranging from 0.33% to 8.53% for 2025. The rates increase across nine brackets, with the top rate of 8.53% applying to income over $78,435 for single filers and $156,870 for married filing jointly.
Does Iowa tax retirement income?
Iowa partially taxes retirement income. Social Security benefits are not taxed, but other retirement income including pensions and 401(k) distributions are subject to Iowa tax, with some exemptions available for qualifying retirement income.
How does Iowa tax agricultural income?
Iowa provides special tax considerations for agricultural income including averaging provisions for farm income, deductions for agricultural land improvement, and special depreciation schedules for farm equipment and livestock.
Is Iowa tax-friendly for middle-income families?
Iowa has relatively moderate tax rates for middle-income families, with progressive brackets that start at 0.33%. The state also offers various deductions and credits that can help reduce the overall tax burden for families.
What deductions are available for Iowa taxpayers?
Iowa offers standard deductions, personal exemptions, deductions for federal taxes paid, charitable contributions, mortgage interest, and special agricultural deductions for qualifying farm operations.
How are remote workers taxed in Iowa?
Iowa residents working remotely pay Iowa tax on all income regardless of where they work. Non-residents working remotely for Iowa companies generally don't owe Iowa tax unless they work physically in the state.