(Des Moines) Iowans are seeing a lower income tax rate in 2025. The new rate took effect yesterday, going down to three-point-eight percent for all taxpayers. That means Iowans now have the country’s sixth-lowest state income tax rate. It’s the latest in a string of efforts by Iowa’s legislature to bring down tax rates in the state, with the newest being signed by Governor Kim Reynolds last year. The rate will save Iowans roughly one billion dollars in taxes over the first two years.
