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Western Iowa Today
Iowa Senate Proposal Eliminates State Income Tax
By Mandy Billings,
(Des Moines, IA) — The state income tax would be eliminated under a proposal in the Iowa Senate. The tax is set to drop to 3-point-9 percent in 2026 under a bill passed by GOP lawmakers last year. A new proposal would lower that rate to 2-point-5 percent by 2028, cutting the income tax altogether in the following years.