Iowa taxes — property, income, sales, retirement

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Property tax, income tax, sales tax, and retirement-income treatment in Iowa. Quick read for movers, retirees, and remote workers.

Moved to flat 3.8% income tax. Higher property tax. SS and retirement income largely untaxed.
Effective property tax
1.50%
of home value/yr
Income tax (top rate)
3.8%
Sales tax (state)
6.00%
local adds more
SS taxed by state?
No

Property tax

Iowa’s effective property tax rate is approximately 1.50% of assessed home value per year. On a $350,000 home that’s about $5,250/yr. Rates vary by county and municipality — this is a state-wide average.

Income tax

Top marginal rate: 3.8%. Brackets vary by income. For wage earners, the effective rate depends on filing status, deductions, and credits.

Sales tax

State base rate: 6.00%. Local municipal and county additions can raise the combined rate by 1-4 percentage points.

Retirement income

Social Security: Not taxed by state. Pensions & 401(k) withdrawals: Partial exclusion / credit available.

Top cities in Iowa

Des Moines · pop 213,096 · momentum 63

Cedar Rapids · pop 137,904 · momentum 67

Davenport · pop 100,938 · momentum 62

Sioux City · pop 86,875 · momentum 68

Ankeny · pop 76,727 · momentum 69

Iowa City · pop 76,710 · momentum 72

Compare to other states: All 50 state tax overviews · All Iowa cities · Best Iowa cities for retirees

Sources: Tax Foundation effective property tax rankings, state DOR publications, AARP retirement tax guide. 2024/2025 representative figures — verify with a CPA for your specific situation.