Reynolds asks lawmakers to implement flat income tax rate this year

(The Center Square) – Iowa Gov. Kim Reynolds is asking lawmakers to implement a 3.65% flat income tax rate this year and a 3.5% flat tax in 2025.

Lawmakers passed a bill in 2022 that created a flat tax rate of 3.9% by 2026. Reynolds said in her Condition of the State address Tuesday night that the state’s $1.83 billion surplus from fiscal year 2023 and $900 million in reserves mean the state is taking too much from taxpayers.

“This bill represents a total savings of almost $3.8 billion for taxpayers over the next five years. And it gets there by cutting taxes for every Iowan who pays them,” Reynolds said. The average family of four with an income of about $78,000 will see a tax savings of over 25%. A single mother of two making $47,000 would see an even greater savings of more than 42%.”

House Minority Leader Jennifer
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