Iowa assess income taxes over nine different tax brackets. They are:

• 36 % on the first $1,494 of taxable income.
• 72 % between $1,495 and $2,988 of taxable income
• 43 % between $2,989 and $5,976 of taxable income
• 50 % between $5,977 and $13,446 of taxable income
• 12 % between $13,447 and $22,410 of taxable income
• 48 % between $22,411 and $29,880 of taxable income
• 80 % between $29,881 and $44,820 of taxable income
• 92 % between $44,821 and $67,230 of taxable income
• 98 % on taxable income of $67,231 and above.

All returns are due by April 30^th, unless the date falls on a weekend, in which the due date changes to the following Monday. Paper returns meet the deadline when they are postmarked by April 30^th, while electronic filing relies on the date of transmission.

Who is a Resident?

An individual is considered a resident of the state if they either maintain a permanent place of abode within the state, or are domiciled in Iowa. Full year residents are assess taxes on all income, regardless of where it was earned, either in state or not, with the only exceptions being income protected from taxation under federal or state law.

Maintaining a permanent place of abode means that the taxpayer has established a reason for being in the state, and has intentions to remain for a sufficient period of time. This is determined using the following factors:

• Amount of time the individual spends in a specific region
• The nature of the abode
• What the individual does while in the region
• The intentions of the individual in relation to all of the above

Iowa state government assumes that anyone who physically spend more than 183 days of the tax year in the state and has a house, apartment, condo, mobile home, or other shelter in which they stay. It’s not required that the taxpayer own the place of abode, as those who rent or lease are also included. Individuals who have entered the state on an involuntary basis, such as lengthy hospital stay or imprisonment are likely to be exempt from the 183 day rule, as their permanent place of abode doesn’t meet the requirements.