Corporate Tax Rate

Iowa collects a state corporate income tax at a maximum marginal tax rate of 12.000%, spread across four tax brackets. 

Tax Bracket (gross taxable income)

Tax Rate (%)

$0+

6.000%

$25,000+

8.000%

$100,000+

10.000%

$250,000+

12.000%


Note: Although Iowa has the highest top marginal corporate income tax in the nation, its rates are not directly comparable with those of other states because the state provides a deduction for federal taxes paid. Iowa’s rate is scheduled to drop to 9.8 percent by 2021, subject to revenue availability.