Saturday 3rd January 2026

A report from the non-partisan Legislative Services Agency indicates there’s been “extremely strong growth” in state tax collections during the past three months.

Over the months of July, August and September, Iowa net General Fund revenue increased $138 million, up 7.5 percent compared to the same three months last year. Income tax receipts are double compared to the same quarter last year, primarily because of federal tax cuts. Iowans get a deduction on their state income taxes for the amount of federal income taxes they pay. That means when they pay less to the feds, they wind up paying more to the state.

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