Income Tax Reform

Since 2018, the state has steadily lowered its income tax rates, moving away from what were once some of the highest in the country. In
2025, Iowa will have a 3.8 percent flat tax — the sixth-lowest rate in the nation.

Iowa’s budget is in a strong position:

Looking ahead, the legislature should consider further opportunities to reduce this flat tax rate, as Iowa’s fiscal position remains strong, with consistent budget surpluses over recent years. 

The long-term goal is to ultimately eliminate the income tax, and legislators should look for ways to responsibily lower the flat tax rate.

“Tax cuts aren’t just about policy — they’re about returning what belongs to the taxpayers. It’s your money, not the government’s.”
— Chris Hagenow 

Despite claims from some critics, this revenue drop is not a cause for concern. It is proof the tax cuts are achieving their intended goal: returning money to taxpayers.