On March 1, 2022, Iowa Governor Kim Reynolds signed into law what has commonly been referred to as a flat tax for Iowa. Much attention focused on the reduction of the top current personal income tax rate of 8.53% to 3.9% in 2026. Though the bill impacts personal income tax rates, many other parts of the bill may generate tax savings, too.
Retirement income now exempt in Iowa
One feature of the new bill will benefit virtually all of Iowa's more “seasoned citizens.” The bill would exempt from Iowa state income tax all “retirement income” for those age 55 or older, including the recipient or their spouse's Individual Retirement Accounts (IRAs), pension plans, or annuities. (Sort of makes you look forward to getting old).
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sine the winters are getting warmer and taxes will be less...
Maybe I won't move to utee's hood