Senate Bill Plans To Eliminate Iowa’s Income Tax

(Des Moines) Senate Republicans are looking to eliminate Iowa’s income tax. Iowa Governor Kim Reynolds signed a bill last year that phases the state’s income tax rate to 3-point-9 percent in 2026. A bill moving through the Senate would continue to phase the income tax to 2-point-5 percent in 2028. The Iowa Department of Management will decide how to gradually eliminate the tax after that, based on the money available in the state’s taxpayer relief fund.