In 2018, Governor Reynolds signed Senate File 2417, which phases in changes to Iowa’s income tax code over several years. This law includes several changes to Iowa corporate income tax that take effect for tax years beginning on or after January 1, 2021.
Corporate Income Tax Rates Reduced
Effective for tax years beginning on or after January 1, 2021, Iowa corporate income tax rates are reduced and the number of corporate income tax brackets decreases from 4 to 3.
New Iowa Corporate Income Tax Rates for 2021
|$0 - $100,000||5.5%|
|$100,001 - $250,000||9%|