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. Iowa corporate income tax rates changed again beginning in 2023, see Iowa Corporate Income Tax Rate Changes for 2023.
New Iowa Corporate Income Tax Rates for 2021
|$0 - $100,000||5.5%|
|$100,001 - $250,000||9%|