Republican leaders in the Iowa House and Senate say it’s likely lawmakers will move up the date the Iowa personal income tax drops to just one flat rate, but there’s no agreement on the governor’s call to eliminate the income tax. House Speaker Pat Grassley notes the state income tax rate is currently scheduled to drop to three-point-nine percent for the 2026 tax year.
Grassley says House Republicans believe tax cuts should be sustainable and let the state meet its budget obligations without raising a different tax to make up for lost revenue.
Senate Majority Leader Jack Whitver says Senate Republicans want to cut taxes as much as possible as quickly as possible.
The 2024 Iowa legislative session begins Monday. Governor Reynolds has said she wants to eliminate the state income tax by January of 2027. She’ll outline her legislative agenda during the annual Condition of the State address next Tuesday.
