Iowa Capital Gains Tax Calculator
Iowa taxes capital gains as ordinary income. Combined top rate: 27.6%.
Step 1: Your income before the capital gain
Your existing taxable income determines which federal capital gains bracket applies (0%, 15%, or 20%).
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Don't know your taxable income? Calculate it from gross income
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Standard deduction (single): $15,750
Or use the Iowa Income Tax Calculator for a detailed breakdown.
⚠️ This calculator provides estimates for educational purposes only. It is not financial, tax, or legal advice. Your actual results may vary.
Iowa Capital Gains Rules
Capital gains deduction for qualifying farm/business property
Iowa allows 100% deduction on gains from sale of qualifying farm property, business real property held 10+ years, or business with material participation
Frequently Asked Questions
Does Iowa have a lower rate for long-term gains?
No. Unlike the federal government, Iowa does not offer a preferential rate for long-term capital gains. All gains are taxed at the flat 3.8% rate.
What is Iowa's capital gains tax rate?
Iowa taxes capital gains as ordinary income at a flat rate of 3.8%. This applies to both short-term and long-term gains at the state level.
What is the combined capital gains tax rate in Iowa?
The maximum combined rate is 27.6% (federal 20% + NIIT 3.8% + state 3.8%). Lower-income filers may qualify for the 0% or 15% federal rate.
Related Resources
For informational purposes only.