Iowa

The state of Iowa, like most states, imposes many different taxes on its residents. These taxes include individual and corporate income tax, sales and use tax, and various other taxes.

The general state sales and use tax rate for Iowa is 5%. Local option sales taxes are also imposed.

The individual income tax return is due on April 30. If the due date falls on a weekend or holiday, taxpayers have until the next business day to mail the return. The tax rates range from a low of .36% to 8.98%.

Corporate income is taxed at graduated rates from 6% to 12%. The Corporate Income Tax Return is due by the last day of the fourth month after the fiscal year-end.

The Franchise Tax is a 5% tax on the income of banks and financial institutions. The return is due by the last day of the fourth month following the fiscal year-end.

Revenue is also generated for the state by imposing other taxes such as the automobile rental tax, cigarette tax, drug stamp tax, environmental protection charge, hotel/motel tax, hazardous waste fee, insurance premium tax, property tax, and real estate transfer tax.

For additional information on Iowa’s taxes or to download forms, visit the Department of Revenue and Finance website at www.state.ia.us/tax.

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