Active duty military will no longer pay state income tax in Iowa. The Legislature approved House File 652, making tax exempt all income from the federal government for military service while on active duty in the armed forces, military reserve or National Guard. |From Sen. Amanda Ragan
Active duty military will no longer pay state income tax in Iowa. The Legislature approved House File 652, making tax exempt all income from the federal government for military service while on active duty in the armed forces, military reserve or National Guard. This tax exemption is retroactive to January 1 of this year.
Iowa law currently only exempts active duty pay for certain combat-related situations. This new legislation is expected to return about $10 million in income taxes to Iowa active duty service personnel annually.
This is just one small way we can give back to those who sacrifice so much for our safety and freedom every day. House File 652 was signed into law by the Governor on May 11.
