Personal Taxes

The Iowa governor proposes a flat earnings tax fee of 4%

Benefits & Executive Comp

January 12, 2022, 12:40 a.m.

Iowa would transition to a “flat and fair” income tax system and waiver taxes on retirement income over four years, according to a proposal that Governor Kim Reynolds made to the state address on Tuesday during her tenure.

The Republican governor called on lawmakers to endorse her plan to gradually consolidate the current nine-tier income tax system, which will result in a flat 4% flat rate of $ 78,435 from 2026. The postponement would accelerate a rate lowering and consolidation process that …

Michael J. Bologna

Staff correspondent

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