Retire in Iowa: 2026 Tax & Cost of Living Guide
All retirement income fully exempt at age 55+ as of 2023, inheritance tax repealed in 2025 — dramatically more retiree-friendly than a few years ago.
State income tax
Flat 3.80%
Social Security
Not taxed
Estate tax
None
Property tax
1.52%
How Iowa Taxes Retirement Income
- Social Security
- Not taxed
- Public pensions (state/federal)
- Not taxed
- Private pensions
- Not taxed
- 401(k) / IRA withdrawals
- Not taxed
Exemption / exclusion
Retirement income (SS, pensions, 401k/IRA) fully exempt for residents age 55+ as of 2023
What Would You Pay in State Income Tax?
Rough estimates at the top marginal rate (actual effective rate will be lower for most retirees due to brackets, exemptions, and standard deduction):
| Annual Retirement Income | Estimated State Tax | Effective Rate |
|---|---|---|
| $50,000 | $1,900 | 3.8% |
| $100,000 | $3,800 | 3.8% |
| $200,000 | $7,600 | 3.8% |
We don't have detailed cost-of-living data for a city in Iowa yet. See our city guides for 300+ other cities worldwide, or compare Iowa against other US states below.
States With No Income Tax
Compare Against Other States
All 50 US States + DC
Ranked by tax-friendliness for retirees. Grouped by income-tax type.
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Tax rates and programs are subject to change. Data is current for 2024–2025. Always consult a qualified tax professional before making relocation decisions.