{"id":373382,"date":"2016-03-31T21:35:19","date_gmt":"2016-04-01T02:35:19","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/state\/iowa-law\/iowa-personal-income-tax-laws.html"},"modified":"2016-06-20T19:51:10","modified_gmt":"2016-06-21T00:51:10","slug":"iowa-personal-income-tax-laws","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/state\/iowa-law\/iowa-personal-income-tax-laws.html","title":{"rendered":"Iowa Personal Income Tax Laws"},"content":{"rendered":"\n
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Iowa Personal Income Tax Laws<\/h1>\n
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Created by FindLaw’s team<\/a> of legal writers and editors<\/i><\/p>\n\n | Last updated\n

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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

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.<\/p>\n

If you\u2019re 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<\/a>. If you suspect a person or business is committing tax fraud, you can report it online<\/a> to the Iowa Department of Revenue.<\/p>\n

The chart below details the main provisions of the personal income tax laws in Iowa.<\/p>\n\n
Code Sections<\/b><\/td>\nIowa Code Chapter 422 \u2013 Individual Income, Corporate, and Franchise Taxes<\/a><\/td>\n<\/tr>
Who is Required to File?<\/b><\/td>\nAlmost everyone must file a state income tax return in Iowa, including:
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Tax Rate<\/b><\/td>\nThe Iowa individual income tax is a progressive tax that\u2019s 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<\/a> that your income falls into.
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\nThe rates<\/a> for both single and married couple filers for 2015 are:
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  • For the first $1,539 \u2013 .36%<\/li>\n
  • For the next $1,539 \u2013 .72%<\/li>\n
  • For the next $3,078 \u2013 2.43%<\/li>\n
  • For the next $7,695 \u2013 4.50%<\/li>\n
  • For the next $9,234 \u2013 6.12%<\/li>\n
  • For the next $7,695 \u2013 6.48%<\/li>\n
  • For the next $15,390 \u2013 6.80%<\/li>\n
  • For the next $23,085 \u2013 7.92%<\/li>\n
  • For anything over $69,255 \u2013 8.98%<\/li>\n<\/ul>\n<\/td>\n<\/tr>
Federal Income Tax Deductible<\/b><\/td>\nYes, you can deduct<\/a> all the federal income taxes you paid during the year.<\/td>\n<\/tr>
Federal Income Tax Used as Basis<\/b><\/td>\nYes, Iowa uses the federal income tax as a basis and uses the same Internal Revenue Code rules to determine things like income<\/a>.<\/td>\n<\/tr><\/tbody><\/table>\n

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<\/a>.<\/p>\n

Note:<\/i><\/b> State and federal tax laws<\/a> change frequently. It\u2019s 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.<\/i><\/p>\n

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