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Most & Least Taxing States: 2014

By Rebecca Helmes of Bloomberg BNA - 2014-04-14T23:05:22Z

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The top bracket of Iowa’s state income tax reaches 8.98 percent at $68,175 in 2014. The state phased out its tax on Social Security income in 2014. If you want to raise a toast in celebration, it’ll cost you: Iowa has some of the highest excise tax rates on table wine and spirits, according to the Tax Foundation and the Distilled Spirits Council of the United States. 

potential gas tax increase, intended to pay for transportation infrastructure, has been percolating in the Iowa Legislature this session, but nothing had passed as of mid-April.

Note: Spouse, lineal-ascendant and lineal-descendant transfer is tax-free; sibling or child-in-law transfer is taxed at 5 percent to 10 percent; all other transfers are taxed at 10 percent to 15 percent.