Welcome to the Iowa Department of Revenue

In December of 2019, President Trump signed the Taxpayer Certainty and Disaster Tax Relief Act of 2019 into law. This Act extends a number of expired federal tax provisions, many retroactively to tax years 2018 and 2019. Iowa has not conformed with any of these federal tax changes to the extent they apply to tax years beginning prior to January 1, 2020.

The Department of Revenue has submitted new proposed rules to the Iowa Legislature, available for public comment through March 3, 2020. See individual notices for details (Sales and Use Tax Exemption on Grain Bins...; Sales and Use Tax Exemption for Manufacturers...)

In 2018, the Iowa legislature enacted Senate File 2417, a state tax reform bill that includes extensive changes to the state’s tax structure. The Department has released guidance to explain the following tax change:

With tax filing season upon us, the Iowa Department of Revenue is reminding Iowans of the many resources available and recent changes at the Department that can assist taxpayers with filing their tax return. The Department will begin processing returns at the same time as the IRS on January 27th. This is because Iowa taxpayers are required to provide their federal return with their Iowa return.

In May 2019, the Iowa legislature enacted House File 590, a bill providing requirements and penalties for tax return preparers. The Department has released new guidance to explain the provisions of this act:

Des Moines, Iowa – The Iowa Department of Revenue is issuing updated income tax withholding tables for 2020 to continue to align Iowa withholding with recent changes in state tax laws.

For individuals, this means that employers will be reducing the amount of Iowa tax withheld from employees’ paychecks, beginning January 1, 2020, increasing take-home wages for individuals.