Tax Guidance

The guidance available here explains the general guides rather than detailed discussions of Iowa tax law. We make every attempt to keep guidance current, however, changes in law or policy may not be immediately reflected.

If you have tax questions, search our Frequently Asked Questions.

For information on how to request tax guidance, see the Department's Tax Guidance Request page.

Tax Guidance

Tax Type:
Property Tax, Sales & Use Tax, Iowa Tax Reform

In 2018, the Iowa legislature enacted Senate File 2417, a state tax reform bill that includes extensive changes to the state’s tax structure. Beginning January 1, 2019, Iowa Code chapter 423A changed regarding how Iowa’s state and local hotel and motel excise tax is administered and imposes new collection obligations on persons who facilitate the sales of lodging on a platform. The Department has further amended and condensed its prior administrative rules relating to this excise tax, which can be found in Chapter 103 of the rules.

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Income Tax

A general guide to estimated income tax payments including what income is subject, who must pay, exemptions, and penalty and interest.

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Tax Type:
Sales & Use Tax, Iowa Tax Reform

In 2018, the Iowa legislature enacted Senate File 2417, a state tax reform bill that includes extensive changes to the state’s tax structure. Effective January 1, 2019, the sales price from rendering, furnishing, or performing a personal transportation service in Iowa is subject to Iowa sales tax and local option sales tax, as applicable. Senate File 2417 changes the tax on limousine service to a broader tax on “Personal Transportation Service” defined as the arrangement or provision of transportation service, regardless of whether the service supplies or uses a vehicle in conjunction with the service. Personal transportation service only includes the transportation of people, not property, including, but not limited to, transportation services provided by a human driver, a nonhuman driver, or a ride sharing service.

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Tax Type:
Income Tax, Iowa Tax Reform

On March 15, 2019, Governor Reynolds signed Senate File 220, which made the same ($70,000) section 179 deduction limitation applicable to all taxpayers for 2018. Earlier legislation only applied this limit to individuals and entities taxed as partnerships. Under that prior law Corporations subject to the income tax, entities that file as S-Corporations for income tax purposes, and financial institutions subject to the franchise tax were subject to a lower ($25,000) section 179 deduction limit for 2018. The earlier legislation also provided the Special Election described below to individuals and partnerships, but not to Corporations (including entities taxed as S-Corporations) and financial institutions. This Special Election has now been extended to all taxpayers.

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Tax Type:
Sales & Use Tax, Iowa Tax Reform

In 2018, the Iowa legislature enacted Senate File 2417, a state tax reform bill that includes extensive changes to the state’s tax structure. Beginning January 1, 2019, under Iowa Code section 423.2(6)(bq), the sale of storage services for tangible or electronic files, documents, and other records are subject to Iowa sales tax and applicable local option sales tax. Storage of household goods, mini-storage, and warehousing of raw agricultural products were taxable prior to January 1, 2019 and remain taxable.

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Tax Type:
Income Tax, Iowa Tax Reform

On May 30, Iowa Governor Kim Reynolds signed Senate File 2417, an extensive state tax reform bill to improve the tax structure in Iowa. Public Law 115-97, commonly referred to as the Tax Cuts and Jobs Act suspended the federal moving expense deduction for tax years 2018-2025, except for moving expenses incurred by active duty military members who move pursuant to a military order and incident to a permanent change of station. Iowa did not conform to this limitation for tax year 2018, allowing taxpayers to deduct qualifying moving expenses. 

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Income Tax, Iowa Tax Reform

This guidance highlights the major differences between federal and Iowa itemized deductions resulting from Iowa’s conformity or nonconformity for tax year 2018 with federal Public Law 114-113 (Protecting Americans from Tax Hikes Act of 2015), Public Law 115-97 (Tax Cuts and Jobs Act), Public Law 115-123 (Bipartisan Budget Act of 2018), Public Law 115-141 (Consolidated Appropriations Act of 2018), and certain federal regulation changes.

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Tax Type:
Income Tax, Iowa Tax Reform

The federal Tax Cuts and Jobs Act (TCJA), Public Law 115-97, added Section 965 to the federal Internal Revenue Code requiring U.S. shareholders to include in their federal income for the last tax year beginning before January 1, 2018, accumulated deferred foreign income. Iowa has not conformed to these TCJA changes for tax year 2017 meaning any accumulated deferred foreign income included in a taxpayer’s 2017 federal income tax return should not be included on the Iowa income tax return.

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Income Tax, Tax Credits, Iowa Tax Reform

Iowa Governor Kim Reynolds signed Senate File 2417, an extensive state tax reform bill to improve the tax structure in Iowa. The 2018 Iowa Tax Reform Bill includes modifications of the Research Activities Credit for individual and corporate income tax. The two modifications include: (1) a clarification of how the credit is calculated and (2) limitations on who may claim the credit.

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Tax Type:
Income Tax, Iowa Tax Reform

Iowa Governor Kim Reynolds signed Senate File 2417, an extensive state tax reform bill to improve the tax structure in Iowa. The 2018 Iowa Tax Reform Bill includes an updated federal conformity provision beginning with tax year 2018, which allows the same deductions for certain withdrawals from a College Savings Iowa and IAdvisor 529 Plan Accounts (529 Plans) and certain rollovers at the state level that are allowed at the federal level. 529 Plans, administered by the Iowa Treasurer of State, help Iowans save money to pay for certain educational expenses for a specific beneficiary. Any money contributed to the account during a given year may be deducted on the account holder’s Iowa income tax return for that year, subject to an annual contribution cap.

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