Since taking office, Governor Reynolds as enacted bold and historic tax reform in Iowa, including the elimination of retirement and inheritance taxes and the lowering of the income tax to a flat 3.8%.
Governor's legacy| Year | Successes and Achievements |
|---|
| 2018 | - Enacted the largest reduction in state income tax to date at that time, saving Iowa families an average of $1,000
- Reduced the top tax bracket from 8.53% to 6.5%
- Lowered the corporate tax rate from 12% to 9.8%
- Removed federal deductibility
- Reduced the number of tax brackets from 9 to 4
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| 2021 | - Passed Senate File 619 to phase out inheritance taxes by 2025.
- Shifted mental health system funding from county property taxes to the state general fund
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| 2022 | - Enacted the second of Governor Reynolds' major tax reform legislation. Lowered the individual income tax rate for all Iowans to a flat 3.9% rate by 2026, eliminated income tax on all retirement income starting in 2023, and overhauled Iowa's corporate tax structure
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| 2024 | - Fast-tracked the planned 3.9% flat income tax rate by 2026 to 3.8% by 2025
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| 2025 | - Enacted major reforms to the Unemployment Insurance Tax system, with a projected $1 billion in savings to Iowa businesses of all sizes
- Decreased the unemployment insurance taxable wage base by 50%
- Simplified the unemployment tax tables
- Decreased the maximum tax rate from 9% to 5.4%
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