Does Iowa tax Social Security benefits?

No. Iowa fully exempts Social Security benefits from state income tax. Even though part of your benefit may be taxable federally, none of it is taxed by Iowa for any resident regardless of age or income.

Are pensions and 401(k) withdrawals taxed in Iowa?

For residents age 55 and older (or disabled, or a surviving spouse), Iowa fully exempts pension, IRA, 401(k), and other qualifying retirement income as of the 2023 tax year. Under age 55, this income is taxed at Iowa's flat 3.8% rate.

What is the age threshold for Iowa's retirement exemption?

The exclusion applies to taxpayers who are 55 years of age or older during the tax year, as well as those who are disabled or are surviving spouses of someone who qualified. Below 55 with no other qualifier, retirement distributions remain taxable in Iowa.

What is Iowa's income tax rate for retirees?

Iowa uses a single flat individual income tax rate of 3.8% for 2025. This rate only matters for retirement income that is not exempt — for most retirees 55 and older, the qualifying retirement income is excluded entirely.

Does this include federal income tax on my retirement income?

No. This tool estimates only the Iowa state tax. Federal tax on Social Security, pensions, and retirement-account distributions is calculated separately and depends on your total income and the federal taxable portion of your benefits.

Iowa Retirement Income Tax Calculator

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Iowa is one of the more retiree-friendly states for income tax. Social Security is fully exempt, and beginning in 2023 most retirement income is exempt for residents age 55 and older. This calculator shows what, if anything, Iowa taxes on your retirement income.

How it works

Iowa applies two key exemptions before its flat rate:

Social Security: 100% exempt (all ages)
Pension / IRA / 401(k): 100% exempt if age 55+ (or disabled / surviving spouse)
                        otherwise taxed at the flat rate
Iowa tax = 3.8% × taxable retirement income

If you are 55 or older, your Social Security and qualifying retirement distributions are both excluded, which usually leaves zero Iowa tax on retirement income. Under 55, only Social Security is exempt and the rest is taxed at 3.8 percent.

Example

A 67-year-old with $30,000 in Social Security, a $24,000 pension, and $12,000 in 401(k) withdrawals owes no Iowa income tax on any of it, because Social Security is exempt and the pension and 401(k) income qualifies for the age-55-plus exclusion.

Notes

This estimate covers Iowa state tax only; federal tax on the same income is separate. The age-55 exclusion also applies to those who are disabled or are surviving spouses of a qualifying individual. Confirm current rules at tax.iowa.gov.