Iowa Capital Gains Tax Calculator
Calculate your 2026 capital gains tax in Iowa. Iowa taxes capital gains at rates up to 3.8%, plus federal taxes.
Original purchase price
Renovations, additions — added to your basis
Agent commissions, closing costs, title & transfer fees
Total Tax
$41,400
20.7% effective rate
Capital Gain
$200,000
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Tax Breakdown
Sale price minus selling costs and all taxes (before any mortgage payoff).
Federal
$33,800
IA State
$7,600
Effective Rate
20.7%
Iowa Capital Gains Tax
Iowa taxes capital gains at its flat 3.8% income tax rate, which applies to all taxable income in 2026. Since 2023 the Iowa capital gain deduction covers only certain sales of farm real property and breeding livestock by farmers, so most investment gains are fully taxed.
Long-term: 3.8% flat rate
Short-term: 3.8% flat rate
NIIT Applied
The 3.8% Net Investment Income Tax applies because your income exceeds $200,000.
Iowa Capital Gains Tax Details
Tax Treatment
Tax Type
Flat tax rate
Maximum Rate
3.8%
Available Exemptions
- Federal home-sale exclusion ($250K single / $500K married filing jointly) flows through to the Iowa return
- Iowa capital gain deduction, limited since 2023 to certain farm real property and breeding livestock sales (not applied here)
- Selling costs and capital improvements reduce the taxable gain
Iowa Capital Gains Tax FAQ
Official References
- IRS Topic 409: Capital Gains and Losses
Federal capital gains tax guidance
- IRS Publication 523: Selling Your Home
$250K / $500K home-sale exclusion, basis adjustments, and selling expenses
- Iowa Department of Revenue — 2026 Individual Income Tax Rate
Iowa state capital gains rules
This calculator provides estimates. Consult a tax professional for advice specific to your situation in Iowa.
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