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Nebraskacorporate tax inIowa
Moderate — top rate 5–7.99%

Iowa

Top Rate
7.1%
Rate Structure
Graduated
Franchise Tax
No
Gross Receipts Tax
No
S-Corp Recognized
Yes

Corporate Income Tax Rate at a Glance

Iowa's top corporate income tax rate is 7.1%, applied as graduated brackets. This places Iowa in the "Moderate (5–7.99%)" tier among U.S. states.

Rate Structure (Flat vs. Graduated)

Graduated rates effective 2025: 5.5% on first $100,000; 7.1% on income over $100,000. Top rate has been reduced annually under 2022 reform; will continue dropping toward a 5.5% flat rate when revenue triggers are met.

S-Corp & Pass-Through Treatment

Iowa recognizes federal S-corp election. Pass-through entities may elect to be taxed at the entity level under Iowa's PTE election (HF 352, enacted 2023).

Official State Revenue Department

For current corporate tax rules in Iowa, consult the state's official source at https://tax.iowa.gov/. Rates and rules change annually — verify with a qualified tax professional before taking any action.

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Related guides

Iowa Department of Revenue: https://tax.iowa.gov/
Law last updated: 2025Row last reviewed: May 7, 2026

Corporate income tax rates change frequently as states enact reform packages and phase-down schedules. Always verify current rates with the state's department of revenue and your tax advisor before making business decisions. This information is for educational purposes only and is not tax or legal advice.