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Controlling Your Taxes Your State Tax Obligations Iowa Taxes on Business Income in Iowa Personal Income Tax in Iowa
Controlling Your Taxes Your State Tax Obligations Iowa Taxes on Business Income in Iowa Personal Income Tax in Iowa
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If you are a resident or nonresident of Iowa and receive taxable income individually from property owned or business transacted in Iowa, you are subject to tax on net income. Therefore, if you are operating your business as an S corporation, partnership, limited liability company, or sole proprietorship, you will be subject to a personal income tax on your business income that passes through to you. In addition, school districts in Iowa are authorized to levy a local income tax, so be sure to check with your local government.
The following 2008 income tax rates are for all filing statuses and apply to the amount of income over the exempted amount:
| Taxable Income | Amount of Tax |
| Over $0, but not over $1,379 | 0.36% |
| Over $1,379, but not over $2,758 | $4.96 plus 0.72% of excess over $1,379 |
| Over $2,758, but not over $5,516 | $14.89 plus 2.43% of excess over $2,758 |
| Over $5,516, but not over $12,411 | $81.91 plus 4.50% of excess over $5,516 |
| Over $12,411, but not over $20,685 | $392.19 plus 6.12% of excess over $12,411 |
| Over $20,685, but not over $27,580 | $898.56 plus 6.48% of excess over $20,685 |
| Over $27,580, but not over $41,370 | $1,345.36 plus 6.80% of excess over $27,580 |
| Over $41,370, but not over $62,055 | $2,283.08 plus 7.92% of excess over $41,370 |
| Over $62,055 | $3,921.33 plus 8.98% of excess over $62,055 |
The following 2009 income tax rates are for all filing statuses and apply to all income:
| Taxable Income | Amount of Tax |
| Over $0 but not over $1,407 | 0.36% of excess over $0 |
| Over $1,407 but not over $2,814 | $5.07 + 0.72% of excess over $1,407 |
| Over $2,814 but not over $5,628 | $15.20 + 2.43% of excess over $2,814 |
| $5,628 but not over $12,663 | $83.58 + 4.50% of excess over $5,628 |
| Over $12,663, but not over $21,105 | $400.16 plus 6.12% of excess over $12,663 |
| Over $21,105, but not over $28,140 | $916.81 plus 6.48% of excess over $21,105 |
| Over $28,140, but not over $42,210 | $1,372.68 plus 6.80% of excess over $28,140 |
| Over $42,210, but not over $63,315 | $2,329.44 plus 7.92% of excess over $42,210 |
| Over $63,315 | $4,000.96 plus 8.98% of excess over $63,315 |
