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The new law will give Iowa the sixth-lowest income tax rate in the country among states that impose an income tax. Nine states have no income tax. Iowa's income tax rate is dropping to 3.8%.
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Keep in mind that what you see are marginal tax rates, but you won’t pay that tax rate on the entire amount. For instance, if you have $100,000 of income, the marginal tax rate is 24%.
What to know as tax bills are due. How much do Iowans pay in income taxes over their lifetime? The average Iowan pays $279,648 toward income taxes, placing Iowa in 17th place among the 51 states ...
The rest of the century balanced new taxes with abolitions: Delaware levied a tax on several classes of income in 1869, then abolished it in 1871; Tennessee instituted a tax on dividends and bond interest in 1883, but Kinsman reports [59] that by 1903 it had produced zero actual revenue; Alabama abolished its income tax in 1884; South Carolina ...
Those cuts will bring Iowa's top individual income tax rate from 8.98% in 2018 to 3.8% next year, taking it from one of the highest individual income tax rates in the country to the sixth lowest.
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