DES MOINES, Iowa — Wednesday brought in New Year, 2025, and some new Iowa laws were put into effect.
A flat individual income tax of 3.8% is the new standard in the state after Iowa lawmakers passed several income tax cuts over the last session. In 2024, the highest income tax bracket was 5.7%.
Iowa Republicans are still indicating that there will be a push at sometime to go down to a 0% individual income tax; with Iowa Democrats concerned about the state’s general fund dollar and increases to other tax avenues to mitigate the decreasing state revenue.
Registration and title fees for certain vehicles in the state increased by $10.
There are new regulations for tobacco and vape products in the state, which include having businesses apply for a license every year to sell the product.
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