Taxes in Marion, Iowa
Complete tax guide for Marion, IA. State income tax up to 5.7%, 1.58% property tax, 8.41% sales tax. Calculate your total tax burden.
State Income Tax
5.7%
Iowa
Property Tax
1.58%
Effective rate
Sales Tax
8.41%
Combined rate
Tax Burden
Moderate
Marion, IA Tax Overview
Population
41,265
Median Income
$59,700
Cost of Living
81 (100 = avg)
State Income Tax
5.7%
Median Home Price
$175,000
Marion Tax Calculator
Pre-filled with Marion median: $59,700
Total Tax Burden in Marion
$13,095
Take-Home: $46,605 · Effective Rate: 21.94%
Federal Tax
$5,126
8.59% eff.
IA State
$3,403
5.70% eff.
FICA
$4,567
7.65% eff.
Take-Home
$46,605
78.06% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $59,700.00 | $4,975.00 |
| Federal Income Tax | -$5,125.50 | -$427.13 |
| Iowa State Tax | -$3,402.90 | -$283.58 |
| Social Security (6.2%) | -$3,701.40 | -$308.45 |
| Medicare (1.45%) | -$865.65 | -$72.14 |
| Take-Home Pay | $46,604.55 | $3,883.71 |
Property Tax in Marion
Median Home
$175,000
Annual Tax
$2,765
Monthly Tax
$230
Effective Rate
1.58%
Sales Tax in Marion
Combined Rate
8.41%
State Portion
~5.9%
Local Portion
~2.5%
The combined sales tax rate in Marion is 8.41%, which is above the national average of 7.12%. On a $100 purchase, you would pay $8.41 in sales tax.
Tax Burden Comparison
| Tax Type | Marion | Iowa Avg | National Avg |
|---|---|---|---|
| Income Tax | 5.7% | 5.7% | 4.6% |
| Property Tax | 1.58% | ~1.58% | 1.1% |
| Sales Tax | 8.41% | ~8.41% | 7.12% |
| Overall Burden | Moderate | — | Moderate |
Tax Saving Tips for Marion 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 Marion (1.58%) is above the national average. Check if you qualify for homestead exemptions or assessment appeals to reduce your property tax bill.
- The combined sales tax rate of 8.41% is relatively high. Consider making large purchases in lower-tax jurisdictions or online retailers that do not charge local tax rates.
- 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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Very LowCalculate 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 Marion, IA?
Marion, Iowa has a state income tax rate up to 5.7%. The property tax rate is 1.58% and the combined sales tax rate is 8.41%.
How much is property tax in Marion?
The effective property tax rate in Marion is 1.58%. On the median home price of $175,000, this equals approximately $2,765 per year or $230 per month. This is above the national average of 1.1%.
What is the sales tax rate in Marion?
The combined sales tax rate in Marion is 8.41%, which includes both state and local components. This is above the national average combined rate of approximately 7.12%.
How does Marion's tax burden compare to other cities?
Marion has a moderate overall tax burden. The effective total tax rate for a median-income household is approximately 28.1%. The combination of 5.7% state income tax, 1.58% property tax, and 8.41% sales tax determines the total burden. Cost of living index is 81 (100 = national average).
Are there any local taxes in Marion?
Marion 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).