Gov. Reynolds signs tax bill into law

CEDAR RAPIDS, Iowa (KCRG) - Iowa Governor Kim Reynolds signed a new tax bill into law on Tuesday.

The bill cuts state income tax rates down to 3.9 percent by 2026. This exempts retirement income like 401K’s, pensions, and IRA’s.

“When I took office, Iowa had the sixth highest individual income tax rate in the nation at 8.98%. I believed Iowans deserved better,” Gov. Reynolds said. “Since then, I’ve worked with the Legislature across multiple sessions to make transformative changes to our tax code, let Iowans keep more of their hard-earned money, and make our state more competitive. With this bill, Iowa is now the fourth lowest for individual income tax rate in the nation. There’s never been a better time in Iowa for bold, sustainable tax reform. This bill rewards work, takes care of our farmers, and supports our retirees, all while protecting key state priorities. Iowans will reinvest these dollars in our economy, communities will prosper, and families will rest a little easier. Once again, we’re putting our faith in Iowans, and they won’t let us down.”

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