![]() ![]() You will begin to receive our Daily On Iowa Politics updates. Most Iowa workers’ income was taxed at between 4.14 percent, with rates increasing as income increased, up to a top rate of 8.53 percent for those earning over $78,435 of taxable income. In 2021, Iowa had nine state income tax rates, tied for the second-most in the country. The remaining states, including Iowa, have varying forms of progressive, or graduated, income tax structure. ![]() The list includes more blue states like Michigan and Massachusetts, but also red states like Kentucky and Utah.Įight states have no state income tax. Ten states currently have a flat state income tax, including Iowa’s eastern neighbor, Illinois. They prefer a more progressive tax structure that taxes higher wager-earners at higher rates than low-income workers. A common pitch has been that a flat tax would make filing taxes simple enough to fit on a postcard.Ĭritics say a flat tax is unfair because it asks the lowest wage-earners to pay the same rate on their taxes as high wage-earners. Supporters say a flat tax is fair and simple. Steve Forbes ran on a national flat tax platform as part of his 2000 presidential campaign. Flat taxes have been an idea for years, and have their fair share of both supporters and critics. ![]()
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