Gov. Reynolds signs flat income tax bill, others into law

DES MOINES, Iowa — On Wednesday Iowa Governor Kim Reynolds signed a piece of legislation that she prioritized in her Condition of the State speech.

Senate File 2442 is the bill that gets rid of individual income tax brackets and sets a flat rate of 3.8% starting on January 1, 2025.

“As far as we’ve come, I’m also confident that we are not done yet,” said Reynolds, teasing further changes to the state’s income tax code. “You know after all, I think Iowa’s approach to taxes is defined by a sense of responsibility to the people of Iowa. They deserve a government that constantly exercises the discipline and the restraint to live within its means, as well as the humility to collect only what it needs, while returning the rest to them.”

City and county officials have highlighted concerns about the bill, as it makes it difficult to project tax revenue for future years with a new tax cap system based on community growth.

Reynolds also signed SF 574 , which looks at economic growth attraction programs, along with making changes to certified site and high-quality jobs programs.

House File 2668 was signed into law on Wednesday morning. That bill would make changes to biomarker testing, which the governor said would help Iowans receive the best care they can while battling cancer.

And the last bill she signed publicly was House File 2489 which expands insurance coverage for secondary breast cancer screenings.

You can view the full list of bills signed into law on Wednesday on the governor’s website .

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