Welcome to the Iowa Department of Revenue

The Department has submitted new proposed rules to the Iowa Legislature (Capital Gain Deduction for Certain Types of Net Capital Gains, Capital Gain Exclusion for Elected Employee-Owned Stock in a Qualified Corporation), available for public comment through August 15, 2023. See individual notices for details.

Based on the recently updated Retailers Motor Fuel Gallons Annual Report, the motor fuel tax rate for B-11 or Higher previously communicated on June 12, 2023 has changed. – Prior to July 1, 2020, the Iowa Department of Revenue used gallon totals from the Iowa Fuel Tax Monthly Report to determine tax rates for motor fuel and special fuel. Beginning July 1, 2020, the Department started using gallon totals from the Iowa Retailers Fuel Gallons Annual Report, resulting in tax rate changes to select fuel types.

The Iowa Department of Revenue is reminding owners of non-residential electric vehicle chargers that new tax changes take effect July 1, 2023.

On May 11, 2023 Governor Reynolds signed House File 352 which creates a voluntary election for a partnership or S corporation to be subject to Iowa income tax at the entity level. The legislation applies retroactively to tax years beginning on or after January 1, 2022. The Department is in the process of reviewing this legislation and will release guidance soon.

The Iowa Department of Revenue previously submitted the following proposed rule (Electric Fuel Excise Tax) to the Iowa Legislature. The following rule has been adopted and filed, effective July 1, 2023. See individual notice for details.