IOWA CAPITAL GAINS TAX · TAX YEAR 2026
Iowa capital gains tax calculator
Iowa taxes capital gains as ordinary income, at its flat 3.8% rate, with no lower rate for long-term gains. On a $50,000 long-term gain with $75,000 of wages, a single filer owes $1,900 of Iowa tax and $7,500 of federal income tax, $9,400 in all, and keeps $40,600.
Tax on your gain
- Total tax on the gain
- $9,400.00
- Federal income tax
- $7,500.00
- Net investment income tax
- $0.00
- Iowa tax
- $1,900.00
- After-tax gain
- $40,600.00
- Effective rate
- 18.80%
Iowa tax by size of gain
What a single filer with $75,000 of wages owes on a long-term gain. Federal tax includes the net investment income tax.
| Gain | Federal tax | State tax |
|---|---|---|
| $10,000 | $1,500 | $380 |
| $50,000 | $7,500 | $1,900 |
| $100,000 | $15,000 | $3,800 |
| $250,000 | $42,250 | $9,500 |
| $1,000,000 | $208,920 | $38,000 |
Iowa capital gains tax questions
Does Iowa tax capital gains?
Yes. Iowa taxes capital gains as ordinary income, at its flat 3.8% rate, with no lower rate for long-term gains.
How much Iowa tax is due on a capital gain?
A single filer with $75,000 of wages owes $1,900 of Iowa tax on a $50,000 long-term gain, 3.8% of the gain, and $9,500, 3.8%, on a $250,000 gain. Federal tax on the same gains is $7,500 and $42,250.
Does Iowa tax short-term capital gains differently?
No. Iowa taxes a $50,000 short-term gain the same as a long-term one: $1,900 of Iowa tax. Federal tax is what changes: $11,064 on the short-term gain against $7,500.
What the calculator leaves out
- Iowa excludes gain only on certain farm property and retired farmers' livestock.
- The farm exclusion needs the land held and farmed for ten years; livestock has shorter tests.
Federal tax stacks the gain on wages after the 2026 standard deduction, taxes a long-term gain at the long-term capital gains rates and a short-term gain at the ordinary brackets, and adds the net investment income tax. The gain is the only investment income. Capital losses and carryovers, qualified dividends, the collectibles and section 1250 rates, the alternative minimum tax and credits are left out; enter a home sale's gain after any federal exclusion.