Iowa Capital Gains Tax Calculator
Calculate capital gains tax in Iowa. State rate: 3.8%. See federal + state combined tax on stocks, property, and investments.
How This Calculator Works
Calculation methodology and assumptions
Capital gains tax is applied to the profit from selling an asset. Federal long-term rates (held 12+ months) are 0%, 15%, or 20% depending on income. Short-term gains are taxed as ordinary income. Iowa's state capital gains tax rate is 3.8%. This is added on top of federal taxes. The Net Investment Income Tax (NIIT) of 3.8% may also apply for high earners.
Key State Information
Iowa state capital gains rate: 3.8%. Iowa's rate is below average compared to other states. Combined with federal taxes, Iowa investors may pay up to 27.6% on long-term gains for top earners.
Frequently Asked Questions
What is the capital gains tax rate in Iowa?
Iowa's state capital gains tax rate is 3.8%. Federal long-term rates are 0%, 15%, or 20% depending on income, plus a potential 3.8% NIIT. Total combined rate can be up to 27.6%.
Does Iowa tax capital gains differently than income?
In Iowa, capital gains are generally taxed at the same rate as ordinary income at the state level.
How can I reduce capital gains tax?
Hold assets for at least 12 months for lower long-term rates. Use tax-loss harvesting to offset gains. Consider Qualified Opportunity Zones, 1031 exchanges (real estate), and maximizing retirement account contributions.