COMPETITIVE ADVANTAGES
Tax Information
Iowa Corporate Income Tax
Description: The tax is imposed on the Iowa net income of corporations doing business within this state or receiving income from property in the state. For tax years on or after January 1, 1987, Iowa imposes an alternative minimum tax equal to 7.2% of Iowa tax preferences. For tax years on or after January 1, 1988, the tax is imposed on the unrelated business income of nonprofit corporations.
Tax Rate: 6% on first $25,000; 8% on next $75,000; 10% on next $150,000; 12% on all over $250,000
Distribution of Funds: State General Fund
Due Date(s) of Returns: Corporation tax returns must be filed by the last day of the 4th month after the close of the tax year. Cooperatives must file a return on or before the 15th day of the 9th month following the close of the cooperative’s tax year. Estimated tax payments are due from most corporations on a quarterly basis. Nonprofit corporation returns with unrelated business income are due on the 15th day of the 5th month following the close of the tax year.
Iowa Individual Income Tax
Description: Tax is imposed on Iowa net income of individuals and estates and trusts. Individuals who have a net income of $9,000 or more must file an Iowa income tax return. Taxpayers with a combined income of $13,500 or less ($9,000 or less for single taxpayers) are generally not required to pay Iowa income tax. Individuals may also be subject to the minimum tax on tax preferences and a tax on lump sum distributions from pension plans.
Tax Rate Schedules are available on our income tax forms page.
Distribution of Funds: State General Fund
Due Date(s) of Returns: The final return and any tax owing is due by the last day of the 4th month following the close of the tax year. Individuals may be required to remit estimated tax payments quarterly. Income tax is also collected through withholding tax. Depending on the amount of tax withheld, withholding tax deposits are due annually, quarterly, monthly or semi-monthly.
Iowa State Sales Tax
Description: The tax is imposed on gross receipts from all sales of tangible personal property and enumerated services. Certain exceptions are provided, including exemption of the sales of certain foods, prescription drugs, medical devices, and farm and industrial machinery, equipment and computers.
Tax Rate: 5%
Distribution of Funds: State General Fund
Due Date(s) of Returns: Depending on the amount of tax collected, a deposit and returns are due annually, quarterly, monthly or semi-monthly.
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