How Do Iowa Taxes Stack Up?
Mark A. Edelman, Professor
Iowa State University
I. Total State & Local Taxes *
A. Total Taxes and Per Capita
- Iowa: $2,674
- U.S. Average: $2,992
- Iowa Rank among 50 states 27th
B. State & Local Taxes as % of Personal Income
- Iowa Taxes % Personal Income: 10.8%
- U.S. average: 11.0%
- Rank among 50 states: 28th
C. State/Local Taxes Per Capita and Ranks for Neighboring States
| Minnesota |
$3,599 |
5th |
| Wisconsin |
$3,318 |
6th |
| Illinois |
$3,131 |
14th |
| Nebraska |
$2,775 |
24th |
| Iowa |
$2,674 |
27th |
| Missouri |
$2,565 |
36th |
| South Dakota |
$2,255 |
47th |
* The rationale for looking at state & local taxes combined is that state and local functions are split differently across states.
Source: Governing Magazine "State and Local Source Book," April 2002.
II. State and Local Property Taxes
A. Property Taxes Per Capita
- Iowa per capita: $883
- U.S. per capita: $881
- Per Capita Rank among 50 states: 20th
B. Property Taxes as % of Personal Income
- Iowa % of Personal Income: 3.6%
- U.S. % of Personal Income: 3.3%
- Iowa % of Personal Income Rank: 15th
C. Property Taxes Per Capita and Ranks for Neighboring States
| Illinois |
$1,163 |
10th |
| Wisconsin |
$1,052 |
12th |
| Nebraska |
$941 |
15th |
| Minnesota |
$934 |
17th |
| Iowa |
$883 |
20th |
| South Dakota |
$842 |
22nd |
| Missouri |
$604 |
37th |
III. State and Local Sales Taxes
A. Sales Taxes per Capita
- Iowa per capita: $892
- U.S. per capita: $1,067
- Per Capita Rank among 50 states: 35th
B. Sales Taxes as % of Personal Income
- Iowa % of Personal Income: 3.6%
- U.S. Average: 3.9%
- Iowa % of Personal Income Rank: 33rd
C. Sales Taxes Per Capita and Ranks for Neighboring States
| Minnesota |
$1,134 |
12th |
| South Dakota |
$1,073 |
20th |
| Missouri |
$1,025 |
23rd |
| Illinois |
$1,020 |
24th |
| Wisconsin |
$971 |
28th |
| Iowa |
$892 |
35th |
| Nebraska |
$887 |
36th |
IV. State and Local Personal Income Taxes
A. Personal Income Taxes Per Capita
- Iowa per capita: $612
- U.S. average: $694
- Per Capita Rank among 50 states: 30th
B. Personal Income Tax % of Personal Income
- Iowa % of Personal Income: 2.5%
- U.S. average: 2.6%
- Iowa % of Personal Income Rank: 33rd
C. Personal Income Taxes Per Capita and Ranks for Neighboring States
| Minnesota |
$1,111 |
5th |
| Wisconsin |
$983 |
8th |
| Missouri |
$705 |
23rd |
| Nebraska |
$643 |
27th |
| Iowa |
$612 |
30th |
| Illinois |
$598 |
31st |
| South Dakota |
0 |
50th |
V. State and Local Corporate Income Taxes
A. Corporate Income Taxes Per Capita
- Iowa per Capita: $ 82
- U.S. per Capita: $124
- Per Capita Rank among 50 States: 31st
B. Corporate Income Tax % of Personal Income
- Iowa % of Personal Income: 0.3%
- U.S. Average: 0.5%
- Iowa % of Personal Income Rank: 32nd
C. Corporate Income Taxes Per Capita and Ranks for Neighboring States
| Illinois |
$173 |
7th |
| Minnesota |
$163 |
11th |
| Wisconsin |
$128 |
16th |
| Iowa |
$82 |
31st |
| Nebraska |
$81 |
32nd |
| South Dakota |
$69 |
37th |
| Missouri |
$51 |
45th |
Note: Two factors for Iowa's rank are fewer corporations per capita than most states and Iowa use of a single-factor rather than 3-factor corporate income tax formula.
VI. Misc. Revenue: Fees, Charges & Interest
A. Misc. Revenue Per Capita
- Iowa per Capita: $1,409
- U.S. per Capita: $1,276
- Per Capita Rank among 50 States: 12th
B. Misc. Revenue % of Total Revenue
- Iowa % of Total Revenue: 23.4%
- U.S. Average: 19.4%
- Iowa % of Total Revenue Rank: 11th
C. Misc. Revenue Per Capita and Ranks for Neighboring States
| Minnesota |
$1,500 |
5th |
| Iowa |
$1,409 |
12th |
| Nebraska |
$1,280 |
22nd |
| Wisconsin |
$1,221 |
30th |
| South Dakota |
$1,123 |
36th |
| Missouri |
$1,013 |
47th |
| Illinois |
$1,013 |
48th |
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