Taxes in Iowa City, Iowa
Complete tax guide for Iowa City, IA. State income tax up to 3.8%, 1.45% property tax, 7% sales tax. Calculate your total tax burden.
State Income Tax
3.8%
Iowa
Property Tax
1.45%
Effective rate
Sales Tax
7%
Combined rate
Tax Burden
Moderate
Iowa City, IA Tax Overview
University of Iowa
Population
74,828
Median Income
$48,890
Cost of Living
96.7 (100 = avg)
State Income Tax
3.8%
Median Home Price
$260,000
Iowa City Tax Calculator
Pre-filled with Iowa City median: $48,890
Total Tax Burden in Iowa City
$9,426
Take-Home: $39,464 · Effective Rate: 19.28%
Federal Tax
$3,828
7.83% eff.
IA State
$1,858
3.80% eff.
FICA
$3,740
7.65% eff.
Take-Home
$39,464
80.72% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $48,890.00 | $4,074.17 |
| Federal Income Tax | -$3,828.30 | -$319.03 |
| Iowa State Tax | -$1,857.82 | -$154.82 |
| Social Security (6.2%) | -$3,031.18 | -$252.60 |
| Medicare (1.45%) | -$708.91 | -$59.08 |
| Take-Home Pay | $39,463.80 | $3,288.65 |
Property Tax in Iowa City
Median Home
$260,000
Annual Tax
$3,770
Monthly Tax
$314
Effective Rate
1.45%
Sales Tax in Iowa City
Combined Rate
7%
State Portion
~4.5%
Local Portion
~2.5%
The combined sales tax rate in Iowa City 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 | Iowa City | Iowa Avg | National Avg |
|---|---|---|---|
| Income Tax | 3.8% | 3.8% | 4.6% |
| Property Tax | 1.45% | ~1.45% | 1.1% |
| Sales Tax | 7% | ~7% | 7.12% |
| Overall Burden | Moderate | — | Moderate |
Tax Saving Tips for Iowa City 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 Iowa City (1.45%) 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 Iowa City, IA?
Iowa City, Iowa has a state income tax rate up to 3.8%. The property tax rate is 1.45% and the combined sales tax rate is 7%. University of Iowa
How much is property tax in Iowa City?
The effective property tax rate in Iowa City is 1.45%. On the median home price of $260,000, this equals approximately $3,770 per year or $314 per month. This is above the national average of 1.1%.
What is the sales tax rate in Iowa City?
The combined sales tax rate in Iowa City is 7%, which includes both state and local components. This is below the national average combined rate of approximately 7.12%.
How does Iowa City's tax burden compare to other cities?
Iowa City has a moderate overall tax burden. The effective total tax rate for a median-income household is approximately 29.3%. The combination of 3.8% state income tax, 1.45% property tax, and 7% sales tax determines the total burden. Cost of living index is 96.7 (100 = national average).
Are there any local taxes in Iowa City?
Iowa City 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). University of Iowa