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Iowa

A guide to help you understand the ins and outs of business in Iowa

Iowa is a Midwestern state located on the west border of Illinois and the north border of Missouri. Iowa’s capital is Des Moines, which is also its largest city. Iowa is the 26th largest state in terms of land mass and has the 30th largest population at an estimated 3.16 million people. In 2019 the GDP for Iowa was $194,658,000,000.

Iowa’s top industries are manufacturing, finance and insurance, education technology, transportation, and bioscience. Iowa has 6,800 finance and insurance companies, with over 95,000 employed in the sector and 80 corporate headquarters. There was over $30 billion in manufacturing in 2019 alone. Another very important fact is that Iowa has the 2nd lowest cost of doing business in the country.

In 2019, Iowa imported $877,154 from Qatar. Its top imports are: Special classification provisions Nuclear reactors, boilers, machinery In 2019, Iowa exported $9,450,029 to Qatar with its top exports being: Nuclear reactors, boilers, machinery Electric machinery, sound/tv equipment Furniture, bedding, lamps, etc.

Iowa has one of the more aggressive tax rates. A marginal rate of 6% for up to $25,000, then 8% for up to $100,000, 10% for up to $250,000 and 12% for anything beyond. However, the tax rate will become more competitive in 2021 when it changes to 5.5% for income up to $100,000, 9% for up to $250,000 and 9.8% for income above the $250,000 threshold. Iowa has four free trade zones: two being in the Des Moines area, one in Cedar Rapids and one in Sioux Falls. Iowa has 57 established incentive programs like the Small Business Linked Investments for Tomorrow Program, Beginning Farm Loan Program, and the STEM Internship Program.

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