IOWA INHERITANCE AND ESTATE TAX · DEATHS IN 2026
Does Iowa have an inheritance tax?
Iowa has no inheritance tax and no estate tax. Iowa's inheritance tax does not apply to deaths on or after January 1, 2025. A $5,000,000 estate owes $0 of Iowa tax and $0 of federal estate tax, because the 2026 federal exclusion is $15,000,000.
Tax on the estate
- Total estate and inheritance tax
- $0.00
- Federal estate tax
- $0.00
- Iowa estate or inheritance tax
- $0.00
Federal estate tax by size of estate
The tax on an estate with nothing left to a spouse or charity and no lifetime taxable gifts.
| Estate | Federal estate tax |
|---|---|
| $5,000,000 | $0 |
| $10,000,000 | $0 |
| $15,000,000 | $0 |
| $20,000,000 | $2,000,000 |
| $25,000,000 | $4,000,000 |
Iowa inheritance and estate tax questions
Does Iowa have an inheritance tax?
No. Iowa has no inheritance tax and no estate tax. Iowa's inheritance tax does not apply to deaths on or after January 1, 2025.
How much federal estate tax does an Iowa estate owe?
Only an estate over the $15,000,000 federal exclusion owes any. A $5,000,000 estate owes $0; a $20,000,000 estate owes $2,000,000, 40% of the amount over the exclusion. The estate pays it, not the heirs.
Does Iowa inheritance tax still apply to earlier deaths?
Yes. A death before January 1, 2025 still follows the old rules, with the return and payment due the last day of the ninth month after death.
Can a small Iowa estate skip probate?
Heirs can collect personal property worth $50,000 or less by affidavit 40 days after death when there is no real property. Probate assets worth up to $200,000 can use the small estate court procedure.
What the calculator leaves out
- Iowa's inheritance tax does not apply to deaths on or after January 1, 2025.
- Gift tax paid on lifetime gifts is not subtracted.
- The deduction for state death taxes (IRC 2058) counts the state estate tax and the entered heir's inheritance tax, not inheritance tax other heirs pay.
- A deceased spouse's unused exclusion (portability) is not added.
Enter the estate's value after debts and expenses. What you leave to a spouse or to charity is deducted in full, as the marital and charitable deductions allow for a U.S.-citizen spouse and a qualifying charity. Lifetime taxable gifts are added back for the federal tax. Federal tax uses the 2026 exclusion of $15,000,000 and rates up to 40%, after deducting state death taxes. These are estimates, not legal advice.