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Des Moines, Iowa – The Iowa Department of Revenue has finalized individual income tax brackets and individual income tax standard deduction amounts for the 2021 tax year (applicable for taxes due in 2022) and the 2021 interest rate, which the agency charges for overdue payments.

The Department of Revenue has submitted proposed rules to the Iowa Legislature. They are available for public comment through October 27, 2020, see individual notices below for details. Additionally, a proposed rule was previously submitted to the Iowa Legislature and have been adopted and filed, effective November 11, 2020.

The Department of Revenue has submitted new proposed rules to the Iowa Legislature, available for public comment through October 13, 2020. See individual notices for details. (Adoption Tax Credit; Withholding—Electronic Filing Requirements, Deadline for Furnishing Statements; Local Assessors; Transmittal of Declaration of Value Forms)

Third Quarter Income Tax Estimate

The Department is reminding taxpayers that Iowa has not extended the due date for estimated income tax payments. The third quarter installment of tax year 2020 estimated income tax for taxpayers filing on a calendar year basis is due September 30, 2020.

The Government Working Group of the Governor’s Economic Recovery Advisory Board will meet from 10 a.m. to noon on Wednesday, September 9. The public is invited to attend.

On August 27, 2020 the Iowa Department of Revenue extended tax payment deadlines for certain businesses. The extension is a result of Order 2020-04, signed by Director of Revenue Kraig Paulsen, which provides flexibility for certain businesses disrupted by COVID-19.

The Government Working Group of the Governor’s Economic Recovery Advisory Board will meet from 8-10 a.m. on Wednesday, August 26. The public is invited to attend.

During the 2019 Legislative Session, the General Assembly added a new exemption from sales and use tax under House File 779 for grain bins and grain bin materials, effective July 1, 2019. The Department previously announced the Sales & Use Tax Exemption: Grain Bins rulemaking had been adopted and filed.

House File 2641 enacted several changes and clarifications to Iowa tax laws on topics of administration, income, sales, and property tax. This is intended to be a basic overview of the sales and use tax provisions of this Act. The Department will implement these changes through the administrative rulemaking process or by providing additional guidance as needed.