Iowa Tax Changes - October 2024
Week Of 10.14.2024
The Iowa Department of Revenue has announced the following tax rates for 2025:
Individual Income Tax:
- Flat rate: 3.8% for all levels of taxable income.
- No income tax brackets in 2025.
Interest Rate:
- Annual interest rate: 10% for overdue taxes and refunds, effective January 1, 2025.
- Monthly interest rate: 0.8%.
Corporate Income Tax:
- Rates remain the same as 2024:
- 0−0−25,000: 5.5%
- 25,001−25,001−100,000: 5.5%
- 100,001−100,001−250,000: 7.1%
- Over $250,000: 7.1%
Week Of 10.14.2024
Iowa Sets 2025 Individual Income Tax Rate and Interest Rate
The Iowa Department of Revenue has announced the 2025 tax year individual income tax rate and the 2025 interest rate. (2025 Interest Income Tax Brackets and Interest Rates, Iowa Dept. of Rev., 10/17/2024.)
Individual tax rate. Iowa law provides for a flat tax rate of 3.8% for all levels of taxable individual income beginning with tax year2025. Thus, there are no more income tax brackets in 2025.
Interest rate. Starting January 1, 2025, the annual interest rate for overdue taxes and refunds in 2025 will be 10% and the monthly interest rate will be 0.8%. The annual interest rate was also 10% for 2024.
Iowa Business Tax Rates—Iowa sets 2025 corporate income tax rates.
The Iowa Department of Revenue has announced that the statutory threshold for recalculating the corporate income tax rate has not been met, so the corporate income tax rates for tax years beginning 2025 will remain the same as the rates for 2024. The rates are: 5.5% for bracket $0-$25,000; 5.5% for bracket $25,001-$100,000; 7.1% for bracket $100,001-$250,000, and 7.1% for a bracket over $250,000. (Order 2024-01, Certifying Iowa Corporate Income Tax Rates, IDR, 10/15/2024.)
Iowa Corporate Income Tax—Iowa sets 2025 corporate income tax rates.
The Iowa Department of Revenue has announced that the statutory threshold for recalculating the corporate income tax rate has not been met, so the corporate income tax rates for tax years beginning 2025 will remain the same as the rates for 2024. The rates are: 5.5% for bracket $0-$25,000; 5.5% for bracket $25,001-$100,000; 7.1% for bracket $100,001-$250,000, and 7.1% for a bracket over $250,000. (Order 2024-01, Certifying Iowa Corporate Income Tax Rates, IDR, 10/15/2024.)
Week Of 10.14.2024
Iowa Sets 2025 Individual Income Tax Rate and Interest Rate
The Iowa Department of Revenue has announced the 2025 tax year individual income tax rate and the 2025 interest rate. (2025 Interest Income Tax Brackets and Interest Rates, Iowa Dept. of Rev., 10/17/2024.)
Individual tax rate. Iowa law provides for a flat tax rate of 3.8% for all levels of taxable individual income beginning with tax year2025. Thus, there are no more income tax brackets in 2025.
Interest rate. Starting January 1, 2025, the annual interest rate for overdue taxes and refunds in 2025 will be 10% and the monthly interest rate will be 0.8%. The annual interest rate was also 10% for 2024.
Iowa Business Tax Rates—Iowa sets 2025 corporate income tax rates.
The Iowa Department of Revenue has announced that the statutory threshold for recalculating the corporate income tax rate has not been met, so the corporate income tax rates for tax years beginning 2025 will remain the same as the rates for 2024. The rates are: 5.5% for bracket $0-$25,000; 5.5% for bracket $25,001-$100,000; 7.1% for bracket $100,001-$250,000, and 7.1% for a bracket over $250,000. (Order 2024-01, Certifying Iowa Corporate Income Tax Rates, IDR, 10/15/2024.)
Iowa Corporate Income Tax—Iowa sets 2025 corporate income tax rates.
The Iowa Department of Revenue has announced that the statutory threshold for recalculating the corporate income tax rate has not been met, so the corporate income tax rates for tax years beginning 2025 will remain the same as the rates for 2024. The rates are: 5.5% for bracket $0-$25,000; 5.5% for bracket $25,001-$100,000; 7.1% for bracket $100,001-$250,000, and 7.1% for a bracket over $250,000. (Order 2024-01, Certifying Iowa Corporate Income Tax Rates, IDR, 10/15/2024.)