As they say, nothing is as certain as death and taxes. In Iowa, that means paying not only a federal income tax, but also a state personal income tax. Chances are, if you live or work in Iowa, you pay the state income tax. As bad a rap as taxes get, they do cover many essential government functions, such as schools, highway maintenance, and police officers.
If you’re tempted to not pay your state or federal taxes, please understand that intentional non-payment or underpayment can have serious consequences, from a 10% penalty for non-timely payment to a criminal fraud conviction. Not paying the taxes you owe is a crime called tax fraud or tax evasion. If you suspect a person or business is committing tax fraud, you can report it online to the Iowa Department of Revenue.
The chart below details the main provisions of the personal income tax laws in Iowa.
| Code Sections | Iowa Code Chapter 422 – Individual Income, Corporate, and Franchise Taxes |
| Who is Required to File? | Almost everyone must file a state income tax return in Iowa, including:
Note that seniors 65 years of age or older can file for a tax exemption if they have $32,000 or less in income if married or $24,000 or less if single. |
| Tax Rate | The Iowa individual income tax is a progressive tax that’s based of the amount of income you earn. You pay a certain amount of tax for the first $X amount of dollars under each bracket, until you reach the final bracket that your income falls into. The rates for both single and married couple filers for 2015 are:
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| Federal Income Tax Deductible | Yes, you can deduct all the federal income taxes you paid during the year. |
| Federal Income Tax Used as Basis | Yes, Iowa uses the federal income tax as a basis and uses the same Internal Revenue Code rules to determine things like income. |
If you have questions about your Iowa state income tax, or you encounter difficulty with the Iowa Department of Revenue, you should talk to an experienced local tax lawyer.
Note: State and federal tax laws change frequently. It’s best to verify these income tax laws by contact an attorney or conduct your own legal research to verify the state law(s) you are researching.
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