Retirement Tax Breakdown for Iowa Residents

Complete Iowa retirement tax guide: income tax rates, capital gains treatment, Social Security and pension taxation, property taxes, and sales tax. Overall retiree-friendliness rank: #8 of 51.

State Income Tax
3.8% top rate

1 bracket(s)

Capital Gains Rate
3.8%

Treated as ordinary income

Property Tax Rate
1.5%

#10 (Low)

Sales Tax Rate
7%

State 6% + local avg 7%

Tax-Friendly State

Iowa fully exempts retirement income including Social Security, pensions, and IRA distributions. The flat income tax is being phased down. Property taxes are above average.

Retirement Income Taxation

Social Security

Not taxed

Pension Income

Not taxed

Retirement Exemption

None

Tax Comparison Summary

State income tax3.8% top
Capital gains3.8%
Property tax1.5% effective
Sales tax7% combined
Overall retiree rank#8 of 51

Iowa Income Tax Brackets

State Tax Bracket Schedule

RateFromTo
3.8%$0No limit

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