Does Iowa tax pensions and retirement income?
Most retirement income not taxed
No, from age 55. Since 2023 Iowa excludes retirement income from Iowa taxable income for taxpayers who are 55 or older, disabled, or certain survivors.
In the state's own words
Copied word for word from the official document linked below each quote:
“Division VI of that legislation excludes retirement income from Iowa taxable income for eligible taxpayers for tax years beginning on or after January 1, 2023.”
“To qualify for the retirement income exclusion, the taxpayer must be: 55 years of age or older on December 31 of the tax year, or Disabled, or A surviving spouse or a survivor having an insurable interest in an individual who has qualified for the exclusion in the tax year on the basis of age or disability.”
Details worth knowing
- For married couples, only the retirement income of a spouse who qualifies is excluded.
And Social Security?
No. Iowa does not tax Social Security. Some benefits still count when Iowa decides whether you have enough income to have to file. The Iowa Social Security page quotes the rule.
Federal tax still applies
Whatever Iowa does, pensions, annuities and traditional IRA or 401(k) withdrawals are generally taxable on your federal return. See the federal tax brackets and, if you are 73 or older, the required minimum distribution calculator.
State rules change, and the details (age limits, income limits, which plans qualify) matter. Check with the Iowa Department of Revenue before you file or move.
Other states in the same group
Check our work
The answer above comes from this document. Follow the link and compare.
- Retirement Income Tax GuidanceIowa Department of Revenue. Read on November 12, 2026.