Iowa

Iowa inheritance tax not applicable for deaths on or after Jan 1, 2025

“Iowa inheritance tax is not applicable for deaths occurring on or after 1/1/25.”

Note: Page states the repeal date but cites no session law; SF 619 (2021) attribution from the prior survey, unverified against a live source.

Iowa income tax rate is 3.8% flat on Iowa taxable income (= federal taxable income)

“A tax is imposed upon the Iowa taxable income of every individual at the rate of 3.8 percent for tax years beginning on or after January 1, 2025.”

Note: Iowa taxable income starts from federal taxable income (Iowa Code §422.7), so the federal standard deduction shelters the first ~$30,000 of gains for MFJ filers. An additive school district surtax (0% to 20% of Iowa tax, multiplicative) applies in ~87% of districts; modal rate is 5% to 10%. Narrow farmer/employee-stock exclusions are election-gated and immaterial to portfolio capital gains.

Iowa income tax top rate is 5.70% for TY2024 (income over $30,000, single filers)

“Over $30,000: the rate of 5.70 percent.”

Note: URL resolves to the Iowa Code Chapter 422 section listing; §422.7(2) is within this chapter. TY2024 graduated top rate; Iowa moved to a flat 3.8% on federal taxable income in TY2025 per Iowa Code §422.5. Iowa Code §422.5A governed the graduated rate schedule through TY2024.

IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback

“In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.”

Note: IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.

Iowa taxes both in-state (standard) and out-of-state muni bond interest via §422.7(2) add-back

“Add interest and dividends from foreign securities and from securities of state and other political subdivisions exempt from federal income tax under the Internal Revenue Code, except for those securities the interest and dividends from which are exempt from taxation by the state of Iowa as otherwise provided by law.”

Note: URL resolves to the Iowa Code Chapter 422 section listing; §422.7(2) is within this chapter. Iowa §422.7(2) adds back all muni interest excluded from federal gross income under IRC §103. Specific Iowa program bonds listed in §422.7(2)(a)-(u) (school infrastructure, Board of Regents, urban renewal, etc.) are exempt from the add-back. Standard Iowa general obligation bonds and ALL out-of-state bonds are taxable. Iowa is in the same 'both-taxable' category as IL and WI, with a narrow list of Iowa program bond exceptions.

Iowa taxes both in-state (standard) and out-of-state muni bond interest via §422.7(2) add-back

“Add interest and dividends from foreign securities and from securities of state and other political subdivisions exempt from federal income tax under the Internal Revenue Code, except for those securities the interest and dividends from which are exempt from taxation by the state of Iowa as otherwise provided by law.”

Note: URL resolves to the Iowa Code Chapter 422 section listing; §422.7(2) is within this chapter. Iowa §422.7(2) adds back all muni interest excluded from federal gross income under IRC §103. Specific Iowa program bonds listed in §422.7(2)(a)-(u) (school infrastructure, Board of Regents, urban renewal, etc.) are exempt from the add-back. Standard Iowa general obligation bonds and ALL out-of-state bonds are taxable. Iowa is in the same 'both-taxable' category as IL and WI, with a narrow list of Iowa program bond exceptions.

Iowa conforms to IRC §1400Z-2 QOZ gain deferral and exclusion

“The taxes imposed by this division shall be computed on the basis of federal taxable income as defined in the Internal Revenue Code of 1986, as amended to and including the date of enactment of the Internal Revenue Code provision being referred to, with the modifications specified in this division.”

Note: URL resolves to the Iowa Code Chapter 422 section listing; §422.7(2) is within this chapter. Iowa rolling IRC conformity (§422.3) incorporates §1400Z-2 without modification.

Iowa conforms to IRC §1202 QSBS gain exclusion via rolling IRC conformity

“The taxes imposed by this division shall be computed on the basis of federal taxable income as defined in the Internal Revenue Code of 1986, as amended to and including the date of enactment of the Internal Revenue Code provision being referred to, with the modifications specified in this division.”

Note: The quoted §422.3 text defines Iowa's general IRC conformity scope. Iowa's §422.7 income subtractions include the QSBS-relevant adjustment; the specific QSBS clause in §422.7 has not been separately extracted.

Iowa taxes FNMA and FHLMC bond interest: Iowa starts from federal taxable income, which includes FNMA/FHLMC interest; the §422.7(2) add-back only applies to IRC §103-excluded muni interest

“Iowa taxable income of individuals is the individual's taxable income computed under the Internal Revenue Code, with the modifications provided in this section.”

Note: URL resolves to the Iowa Code Chapter 422 section listing; §422.7(2) is within this chapter. Iowa starts from federal taxable income (not AGI). FNMA and FHLMC bond interest is INCLUDED in federal taxable income; it is not IRC §103-excluded muni interest. The §422.7(2) add-back applies only to IRC §103-excluded obligations; FNMA/FHLMC interest is in the base. Iowa Code §422.7 contains no subtraction for FNMA/FHLMC interest. Secondary clause (§422.7(2)): 'Add interest and dividends from foreign securities and from securities of state and other political subdivisions exempt from federal income tax under the Internal Revenue Code.'

Iowa income tax rate is 3.8% flat on Iowa taxable income (= federal taxable income)

“A tax is imposed upon the Iowa taxable income of every individual at the rate of 3.8 percent for tax years beginning on or after January 1, 2025.”

Note: Iowa taxable income starts from federal taxable income (Iowa Code §422.7), so the federal standard deduction shelters the first ~$30,000 of gains for MFJ filers. An additive school district surtax (0% to 20% of Iowa tax, multiplicative) applies in ~87% of districts; modal rate is 5% to 10%. Narrow farmer/employee-stock exclusions are election-gated and immaterial to portfolio capital gains.

U.S. Treasury interest exempt from Iowa income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations

“Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.”

Note: 31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.

FHLB and FFCB bond interest exempt from Iowa income tax: federal enabling statutes mandate state tax exemption

“Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.”

Note: 12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.

Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation

“The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).”

Note: 12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.

IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback

“In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.”

Note: IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.

Iowa income tax rate is 3.8% flat on Iowa taxable income (= federal taxable income)

“A tax is imposed upon the Iowa taxable income of every individual at the rate of 3.8 percent for tax years beginning on or after January 1, 2025.”

Note: Iowa taxable income starts from federal taxable income (Iowa Code §422.7), so the federal standard deduction shelters the first ~$30,000 of gains for MFJ filers. An additive school district surtax (0% to 20% of Iowa tax, multiplicative) applies in ~87% of districts; modal rate is 5% to 10%. Narrow farmer/employee-stock exclusions are election-gated and immaterial to portfolio capital gains.

Iowa income tax rate is 3.8% flat on Iowa taxable income (= federal taxable income)

“A tax is imposed upon the Iowa taxable income of every individual at the rate of 3.8 percent for tax years beginning on or after January 1, 2025.”

Note: Iowa taxable income starts from federal taxable income (Iowa Code §422.7), so the federal standard deduction shelters the first ~$30,000 of gains for MFJ filers. An additive school district surtax (0% to 20% of Iowa tax, multiplicative) applies in ~87% of districts; modal rate is 5% to 10%. Narrow farmer/employee-stock exclusions are election-gated and immaterial to portfolio capital gains.

Iowa conforms to the federal capital-loss base; treatment of an imported pre-residency section 1212 carryforward is a structural inference

“Enter your federal taxable income as reported on federal 1040, line 15.”

Note: The 2025 IA 1040 expanded instructions (Line 2) start Iowa income from federal taxable income (federal 1040 line 15), so the federal section 1212 capital-loss carryover flows through. Quote verbatim from the live Iowa DOR guidance page. No published guidance addresses the imported pre-residency carryforward, so that application remains a structural inference.