Today, Governor Reynolds announced that Iowa’s corporate tax rate will drop to 7.1 percent from 8.4 percent for tax year (TY) 2024, which was not projected to happen until later than TY 2027. 

The Governor’s 2022 tax bill, HF2317, includes the formula to reduce the corporate tax rate when net corporate income tax receipts exceed $700 million.  For fiscal year 2023, net corporate income tax receipts exceeded $838 million, triggering a drop of 15.5 percent in the top corporate tax rate. 

“Iowa businesses are growing because government is getting out of their way,” said Governor Kim Reynolds. “From cutting taxes and red tape to expanding economic freedom and opportunity, Iowa is growing and providing businesses and our people the freedom to flourish.”