(Des Moines, IA) — Iowa’s governor has signed a two-billion-dollar change in the state’s tax system into law. Iowa’s top income tax rate will be incrementally lowered over the next few years until every taxpayer is paying a flat three-point-nine percent in 2026. The change will eliminate the state’s progressive income tax system, where wealthier Iowans pay higher rates than lower-income Iowans. This state will join 10 others with some form of flat income tax. It’s the third major tax cut Reynolds has signed into law after becoming governor.
