Iowa HF496 modifies individual and alternate income tax rates, lowering them to 2.5% and 3.0% respectively.

Iowa HF496 amends the state's income tax rates, reducing the individual income tax rate from 3.8% to 2.5% and the alternate income tax rate from 4.3% to 3.0%. The changes apply to tax years beginning on or after January 1, 2026. The bill also modifies the computation of the alternate tax for married persons filing jointly, heads of household, or surviving spouses with net incomes exceeding $32,000.

Iowa HF496 modifies individual and alternate income tax rates, lowering them to 2.5% and 3.0% respectively.

Iowa HF496 amends the state's income tax rates, reducing the individual income tax rate from 3.8% to 2.5% and the alternate income tax rate from 4.3% to 3.0%. The changes apply to tax years beginning on or after January 1, 2026. The bill also modifies the computation of the alternate tax for married persons filing jointly, heads of household, or surviving spouses with net incomes exceeding $32,000.