IA risk area
Tax exposure in Iowa
State estate or inheritance tax rules and how they interact with federal thresholds.
Iowa inheritance tax is fully repealed for deaths on or after January 1, 2025, and Iowa’s estate tax has been repealed since 2005.
Does the state impose an estate or inheritance tax?Who is exempt or receives preferential treatment?How does federal tax interact with state rules?
At a glance
Key takeaways
- No inheritance tax is imposed for deaths occurring on or after January 1, 2025.
- Iowa estate tax is not applicable for deaths occurring on or after January 1, 2005.
- For earlier taxable estates, returns were generally due nine months after death.
- With no state death tax, tax exposure is primarily federal when the estate exceeds the federal exemption.
Questions to consider
Questions this risk area helps you evaluate in Iowa
- Does the state impose an estate or inheritance tax?
- Who is exempt or receives preferential treatment?
- How does federal tax interact with state rules?
State overview
Iowa inheritance tax is fully repealed for deaths on or after January 1, 2025, and Iowa’s estate tax has been repealed since 2005.
- No inheritance tax is imposed for deaths occurring on or after January 1, 2025.
- Iowa estate tax is not applicable for deaths occurring on or after January 1, 2005.
- For earlier taxable estates, returns were generally due nine months after death.
- With no state death tax, tax exposure is primarily federal when the estate exceeds the federal exemption.
Sources
- https://revenue.iowa.gov/taxes/tax-guidance/general/iowa-taxfee-descriptions-and-rates
- https://rules.iowa.gov/Notice/Details/9326C
- https://taxfoundation.org/data/all/state/estate-inheritance-taxes/
Risk sources
- IRS inflation adjustments for tax year 2026
Use for the current federal estate tax basic exclusion amount.
- IRS Instructions for Form 706 (United States Estate Tax Return)
Defines filing requirements and federal estate tax framework.
- Tax Foundation - State estate and inheritance taxes
Current list of states with estate or inheritance taxes.
National sources provide baseline context; state statutes and court rules control in Iowa.