New laws, regulations taking effect in Iowa on Jan. 1, 2026

IOWA, USA — A new year is set to begin, and Iowans can expect some changes when the calendar flips to January.

Many laws passed this legislative session took effect in July, but a handful of laws and regulations will begin Jan. 1.

Changes to sports betting

Starting in 2026, all winnings from sports wagering will be considered earned income in Iowa, making your winnings subject to state and federal income tax.

State income tax will automatically be withheld from winnings. Prior to this change, winners would receive the full amount of their winnings and would pay taxes on their winnings later.

Hands-free driving law

While Iowa’s hands-free driving law actually took effect in July, violating the law will come with a price beginning Jan. 1…

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