14. Iowa
Because localities can add as much as 1 percent to the state’s 6 percent levy, the average combined rate is actually 6.94 percent. Still, there’s some good news regarding income tax. The lowest rate is 0.33 percent on up to $1,638 of taxable income, and the highest rate is 8.53 percent on more than $73,710.
The best part for all Iowa residents? They are all able to deduct federal income tax from the state’s taxable income. The Hawkeye State salutes its homeowners with a $1,559 tax per $100,000 of assessed home value.
And although it doesn’t impose an estate tax, the inheritance one can be as much as 15 percent, based on the inherited value asset and the relationship between the recipient and the decedent.
