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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.

Des Moines, Iowa – The Iowa Department of Revenue has finalized the 2020 interest rate, individual income tax brackets, and individual income tax standard deduction amounts for the 2020 tax year (applicable for taxes due in 2021). 

Interest Rates

Starting January 1, 2020, the interest rate for taxpayers with overdue payments will be:

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 new guidance to explain the following tax change:

Welcome to the Department's all-new website! The new site includes better navigation, improved search functions, and a simplified homepage. The Department utilized customer feedback and data analytics in designing and building the site.

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 updated guidance to explain the following tax change:

In response to Governor Reynolds’ recent disaster declarations for five additional Iowa counties -- Clinton, Decatur, Louisa, Muscatine, Scott, and Wapello -- the Iowa Department of Revenue has granted an extension and suspension of any penalty or interest for taxpayers whose principal residence or business is located in these counties.

Following the release of Internal Revenue Service news release IA-2019-02 on March 25, 2019, providing federal tax relief for Iowans in counties damaged by flooding, the Iowa Department of Revenue is providing similar relief at the state level.

In response to Governor Reynolds’ disaster declarations for many Iowa counties, the Iowa Department of Revenue has granted a 30-day extension and suspension of any penalty or interest for taxpayers whose principal residence or business is located in the disaster areas and whose payment or return is due on or before March 31. This includes all tax types.