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2026 rules · verified against Iowa's primary source
Iowa fully exempts military retirement pay from state income tax.
Military retirement benefits (and 10 U.S.C. 1447 survivor benefits) are fully excluded from Iowa income tax regardless of age. Iowa has a flat 3.8% tax as of 2025.
Treatment
fully exempt
Top marginal rate
3.80%
Source: https://revenue.iowa.gov/taxes/tax-guidance/individual-income-tax/military-tax-information · verified July 2026
Estimated Iowa state income tax on your military retirement, using the top marginal rate on the taxable portion (an upper bound; your effective rate is usually lower).
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