No Iowa State Tax

No Iowa State Tax. The rate for both is 6%, though an additional 1% applies to most sales subject to sales tax, as many jurisdictions impose a. In 2023, iowa will have four income tax brackets — and which bracket you fall into will affect when your tax rate will lower to 3.9%.

The remaining states, including iowa, have varying forms of progressive, or graduated, income tax structure. All retail sales (no cap) * = alaska does not assess a state sales tax rate.