Sioux City offers a competitive tax environment that supports both residents and businesses. As of fiscal year 2025–2026, the city's property tax levy is set at approximately $17.66 per $1,000, with an overall combined levy of approximately $36/$1,000 of assessed value, depending on the school district and county in which the property is located.
On the state level, Iowa has implemented significant reforms to its income tax structure. In 2025, the state introduced a flat personal income tax rate of 3.8%, down from the previous rate of 5.7% in 2024. This move simplifies the tax code and enhances Iowa's appeal to both individuals and businesses. Additionally, Iowa has eliminated taxes on retirement income and inheritance, providing further financial relief to residents.
Looking ahead, Iowa's corporate income tax rates are also undergoing a phased reduction. Effective for tax years beginning on or after January 1, 2024, the corporate income tax rates are as follows:
Bracket |
Rate |
|---|---|
$0 - $25,000 |
5.5% |
$25,001 - $100,000 |
5.5% |
$100,001 - $250,000 |
7.1% |
Over $250,000 |
7.1% |
These rates are part of a plan to reduce the corporate income tax rate to a flat 5.5% over time, contingent on meeting certain revenue thresholds. This phased approach aims to foster a business-friendly environment while maintaining fiscal responsibility.