Taxes in Cedar Rapids, Iowa
Complete tax guide for Cedar Rapids, IA. State income tax up to 3.8%, 1.49% property tax, 7% sales tax. Calculate your total tax burden.
State Income Tax
3.8%
Iowa
Property Tax
1.49%
Effective rate
Sales Tax
7%
Combined rate
Tax Burden
Low
Cedar Rapids, IA Tax Overview
Population
137,710
Median Income
$58,932
Cost of Living
88.5 (100 = avg)
State Income Tax
3.8%
Median Home Price
$175,000
Cedar Rapids Tax Calculator
Pre-filled with Cedar Rapids median: $58,932
Total Tax Burden in Cedar Rapids
$11,781
Take-Home: $47,151 · Effective Rate: 19.99%
Federal Tax
$5,033
8.54% eff.
IA State
$2,239
3.80% eff.
FICA
$4,508
7.65% eff.
Take-Home
$47,151
80.01% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $58,932.00 | $4,911.00 |
| Federal Income Tax | -$5,033.34 | -$419.45 |
| Iowa State Tax | -$2,239.42 | -$186.62 |
| Social Security (6.2%) | -$3,653.78 | -$304.48 |
| Medicare (1.45%) | -$854.51 | -$71.21 |
| Take-Home Pay | $47,150.95 | $3,929.25 |
Property Tax in Cedar Rapids
Median Home
$175,000
Annual Tax
$2,608
Monthly Tax
$217
Effective Rate
1.49%
Sales Tax in Cedar Rapids
Combined Rate
7%
State Portion
~4.5%
Local Portion
~2.5%
The combined sales tax rate in Cedar Rapids is 7%, which is below the national average of 7.12%. On a $100 purchase, you would pay $7.00 in sales tax.
Tax Burden Comparison
| Tax Type | Cedar Rapids | Iowa Avg | National Avg |
|---|---|---|---|
| Income Tax | 3.8% | 3.8% | 4.6% |
| Property Tax | 1.49% | ~1.49% | 1.1% |
| Sales Tax | 7% | ~7% | 7.12% |
| Overall Burden | Low | — | Moderate |
Tax Saving Tips for Cedar Rapids Residents
- Iowa's income tax rate of 3.8% is competitive. You may still benefit from maximizing 401(k) contributions ($23,500 limit) to reduce your taxable income at both state and federal levels.
- Property tax in Cedar Rapids (1.49%) 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.
Other Cities in Iowa
Calculate Your Full Iowa Tax Burden
See detailed state tax brackets, FICA breakdown, and compare to neighboring states.
Frequently Asked Questions
What are the tax rates in Cedar Rapids, IA?
Cedar Rapids, Iowa has a state income tax rate up to 3.8%. The property tax rate is 1.49% and the combined sales tax rate is 7%.
How much is property tax in Cedar Rapids?
The effective property tax rate in Cedar Rapids is 1.49%. On the median home price of $175,000, this equals approximately $2,608 per year or $217 per month. This is above the national average of 1.1%.
What is the sales tax rate in Cedar Rapids?
The combined sales tax rate in Cedar Rapids is 7%, which includes both state and local components. This is below the national average combined rate of approximately 7.12%.
How does Cedar Rapids's tax burden compare to other cities?
Cedar Rapids has a low overall tax burden. The effective total tax rate for a median-income household is approximately 26%. The combination of 3.8% state income tax, 1.49% property tax, and 7% sales tax determines the total burden. Cost of living index is 88.5 (100 = national average).
Are there any local taxes in Cedar Rapids?
Cedar Rapids does not impose a separate local or city income tax. Residents pay the state income tax of 3.8%, federal income tax, and FICA (Social Security and Medicare).