![]() To receive notifications of resources and guidance issued by the Department, subscribe to updates by selecting the tax topics of interest. This information was sent via GovDelivery to those subscribed to receive Law & Policy updates from the Department. Iowa Code sections 422.4 defines procedures for the calculation of inflation factors. Indexation is meant to protect taxpayers from paying higher income taxes solely as a result of inflation. Iowa Code section 422.5 details indexation of Iowa income tax brackets. Tax Rates, Resident, others taxable income not over 15,000: 3.1 (79-32,110) taxable income over 15,000 but not over 30,000: 465 plus 5.25 of excess. The tax year 2022 maximum Earned Income Tax Credit amount is 6,935 for qualifying taxpayers who have three or more qualifying children, up from 6,728 for tax year 2021. Indexation of the standard deductions is covered in Iowa Code sections 422.9 and 422.21. The 2021 exemption amount was 73,600 and began to phase out at 523,600 (114,600 for married couples filing jointly for whom the exemption began to phase out at 1,047,200). These tax features are determined each year by applying inflation factors to, or “indexing,” the previous year’s amounts. Iowa law provides for the indexation of individual income tax brackets and standard deduction amounts. Tax year 2022 income tax brackets are shown in the table below.
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