Under current law, the individual income top tax rate rates are set at 5.7% for tax year 2024 4.82% for tax year
2025, and a flat rate of 3.9% for tax year 2026. Under this legislation, individual taxpayers will pay a flat rate of 3.8% in tax year 2025. This is a 33% reduction from this tax year going into next year, amounting to approximately $1 billion in additional tax relief. This legislation passed the Senate 39-7 and passed the House 68-24.
Gov. Reynolds Signed this Legislation into Law on May 1, 2024.
Constitutional Amendment to Raise State Income Taxes – HJR 2006
This Constitutional amendment would require a two-thirds majority vote in both Iowa legislative chambers to increase income tax rates. This legislation must pass both legislative chambers in 2025 or 2026 and then be placed before voters on the 2026 General election ballot. This legislation passed the Senate 31-13 and passed the House 61-35.
No Governor Signature Required for this Legislation.
Prohibiting Tax Dollars to Fund Universal Basic Income – HF 2319
Prohibits unconditional taxpayer funded transfer payments (guaranteed income) to Iowa residents. This legislation will prohibit cities and counties from creating costly taxpayer funded programs in Iowa and will help protect taxpayers against the redistribution of wealth that disincentivizes work. This legislation passed the Senate 35-13 and passed the House 55-43.
Gov. Reynolds Signed this Legislation into Law on May 1, 2024.
Constitutional Amendment to Change the Flat Income Tax – SJR 2004
This Constitutional amendment would require that a two-thirds majority vote in both Iowa legislative chambers to change the flat income tax system in Iowa. This legislation needs to pass both legislative chambers in 2025 or 2026 and then be placed on the 2026 General election ballot for the voters of Iowa to decide if the amendment should be added to Iowa’s Constitution. This legislation passed the Senate 34-15 and passed the House 58-35.
No Governor Signature Required for this Legislation.
Consolidation of Iowa Boards and Commissions – SF 2385
Eliminates or consolidates 83 current boards and commissions and creates a new State Government Efficiency Review Committee. This committee will regularly review the state’s boards and commissions for their usefulness and make recommendations to the legislature. This legislation will increase state government accountability by eliminating unnecessary bureaucracy and help make government more efficient for Iowans. This legislation passed the Senate 32-14 and passed the House 54-42.
Gov. Reynolds Signed this Legislation into Law on May 17, 2024.
