Iowa income tax revenue dips 18.6%, largely from tax cuts

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DES MOINES — State revenue in Iowa decreased by $42.4 million, or 6.7 percent, in August compared to the same time period last year, according to a r eport issued Tuesday by the Iowa Legislative Services Agency.

The dip is primarily due to a decrease in income tax revenue collected by the state stemming from tax cuts enacted by the Republican-led legislature in recent years.

The money collected by the state from income tax fell by 18.6 percent in July and August, compared to the same time frame in the last fiscal year, according to the report. Personal income tax receipts in August totaled $350 million, a 13.1 percent decrease compared to August 2024.

The tax cuts, enacted over multiple bil