Taxes in Ames, Iowa
Complete tax guide for Ames, IA. State income tax up to 5.7%, 1.57% property tax, 6.07% sales tax. Calculate your total tax burden.
State Income Tax
5.7%
Iowa
Property Tax
1.57%
Effective rate
Sales Tax
6.07%
Combined rate
Tax Burden
High
Ames, IA Tax Overview
Population
66,427
Median Income
$42,000
Cost of Living
92.5 (100 = avg)
State Income Tax
5.7%
Median Home Price
$245,000
Ames Tax Calculator
Pre-filled with Ames median: $42,000
Total Tax Burden in Ames
$8,609
Take-Home: $33,392 · Effective Rate: 20.50%
Federal Tax
$3,002
7.15% eff.
IA State
$2,394
5.70% eff.
FICA
$3,213
7.65% eff.
Take-Home
$33,392
79.50% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $42,000.00 | $3,500.00 |
| Federal Income Tax | -$3,001.50 | -$250.13 |
| Iowa State Tax | -$2,394.00 | -$199.50 |
| Social Security (6.2%) | -$2,604.00 | -$217.00 |
| Medicare (1.45%) | -$609.00 | -$50.75 |
| Take-Home Pay | $33,391.50 | $2,782.63 |
Property Tax in Ames
Median Home
$245,000
Annual Tax
$3,847
Monthly Tax
$321
Effective Rate
1.57%
Sales Tax in Ames
Combined Rate
6.07%
State Portion
~3.6%
Local Portion
~2.5%
The combined sales tax rate in Ames is 6.07%, which is below the national average of 7.12%. On a $100 purchase, you would pay $6.07 in sales tax.
Tax Burden Comparison
| Tax Type | Ames | Iowa Avg | National Avg |
|---|---|---|---|
| Income Tax | 5.7% | 5.7% | 4.6% |
| Property Tax | 1.57% | ~1.57% | 1.1% |
| Sales Tax | 6.07% | ~6.07% | 7.12% |
| Overall Burden | High | — | Moderate |
Tax Saving Tips for Ames Residents
- Iowa's income tax rate of 5.7% is above average. Maximize pre-tax retirement contributions (401k up to $23,500, IRA up to $7,000) to reduce both federal and state taxable income.
- Property tax in Ames (1.57%) is above the national average. Check if you qualify for homestead exemptions or assessment appeals to reduce your property tax bill.
- Use a Health Savings Account (HSA) if eligible. Contributions are tax-deductible ($4,300 individual, $8,550 family), growth is tax-free, and withdrawals for medical expenses are tax-free.
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See detailed state tax brackets, FICA breakdown, and compare to neighboring states.
Frequently Asked Questions
What are the tax rates in Ames, IA?
Ames, Iowa has a state income tax rate up to 5.7%. The property tax rate is 1.57% and the combined sales tax rate is 6.07%.
How much is property tax in Ames?
The effective property tax rate in Ames is 1.57%. On the median home price of $245,000, this equals approximately $3,847 per year or $321 per month. This is above the national average of 1.1%.
What is the sales tax rate in Ames?
The combined sales tax rate in Ames is 6.07%, which includes both state and local components. This is below the national average combined rate of approximately 7.12%.
How does Ames's tax burden compare to other cities?
Ames has a high overall tax burden. The effective total tax rate for a median-income household is approximately 31.9%. The combination of 5.7% state income tax, 1.57% property tax, and 6.07% sales tax determines the total burden. Cost of living index is 92.5 (100 = national average).
Are there any local taxes in Ames?
Ames does not impose a separate local or city income tax. Residents pay the state income tax of 5.7%, federal income tax, and FICA (Social Security and Medicare).