Iowa Code » Chapter 450 — INHERITANCE TAX
Iowa Code

Iowa Code § 450.10 (2026)

Rate of tax

✓ current as of July 2026
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The property or any interest therein or income therefrom, subject to the provisions of this chapter, shall be taxed as herein provided:

1. When the property or any interest in property, or income from property, taxable under the provisions of this chapter, passes to the brother or sister, son-in-law, or daughter-in-law, the rate of tax imposed on the individual share so passing shall be as follows:

a. Five percent on any amount up to twelve thousand five hundred dollars.

b. Six percent on any amount in excess of twelve thousand five hundred dollars and up to twenty-five thousand dollars.

c. Seven percent on any amount in excess of twenty-five thousand dollars and up to seventy-five thousand dollars.

d. Eight percent on any amount in excess of seventy-five thousand dollars and up to one hundred thousand dollars.

e. Nine percent on any amount in excess of one hundred thousand dollars and up to one hundred fifty thousand dollars.

f. Ten percent on all sums in excess of one hundred fifty thousand dollars.

2. When the property or interest in property or income from property, taxable under this chapter, passes to a person not included in subsections 1 and 6, the rate of tax imposed on the individual share so passing shall be as follows:

a. Ten percent on any amount up to fifty thousand dollars.

b. Twelve percent on any amount in excess of fifty thousand dollars and up to one hundred thousand dollars.

c. Fifteen percent on all sums in excess of one hundred thousand dollars.

3. When the property or any interest in property or income from property, taxable under the provisions of this chapter, passes in any manner to societies, institutions or associations\n\nTue Dec 09 22:11:08 2025 Iowa Code 2026, Chapter 450 (43, 1) 7 INHERITANCE TAX, §450.12\n\nincorporated or organized under the laws of any other state, territory, province or country than this state, for charitable, educational or religious purposes, or to cemetery associations, including humane societies not organized under the laws of this state, or to resident trustees for uses without this state, the rate of tax imposed shall be ten percent on the entire amount so passing.

4. When the property or any interest in property or income from property, taxable under this chapter, passes to any firm, corporation, or society organized for profit, including fraternal and social organizations which do not qualify for exemption under sections 170(c) and 2055 of the Internal Revenue Code, the rate of tax imposed shall be fifteen percent on the entire amount so passing.

5. When the property or any interest in property, or income from property, taxable under this chapter, passes to any person included under subsection 1, there shall be credited to the tax imposed on the individual share so passing an amount equal to the tax imposed in this state on the decedent on any property, real, personal or mixed, or the proportionate share thereof on property passing to the person taxed hereunder, which can be identified as having been received by the decedent as a share in the estate of any person who died within two years prior to the death of the decedent, or which can be identified as having been acquired by the decedent in exchange for property so received. The credit shall not be applicable to taxes on property of the decedent which was not acquired from the prior estate.

6. Property, interest in property, or income passing to the surviving spouse, and parents, grandparents, great-grandparents, and other lineal ascendants, children including legally adopted children and biological children entitled to inherit under the laws of this state, stepchildren, and grandchildren, great-grandchildren, and other lineal descendants, is not taxable under this section.

7. a. In lieu of each rate of tax imposed in subsections 1 through 4, for property passing from the estate of a decedent dying on or after January 1, 2021, but before January 1, 2022, there shall be imposed a rate of tax equal to the applicable tax rate in subsections 1 through 4, reduced by twenty percent, and rounded to the nearest one-hundredth of one percent.

b. In lieu of each rate of tax imposed in subsections 1 through 4, for property passing from the estate of a decedent dying on or after January 1, 2022, but before January 1, 2023, there shall be imposed a rate of tax equal to the applicable tax rate in subsections 1 through 4, reduced by forty percent, and rounded to the nearest one-hundredth of one percent.

c. In lieu of each rate of tax imposed in subsections 1 through 4, for property passing from the estate of a decedent dying on or after January 1, 2023, but before January 1, 2024, there shall be imposed a rate of tax equal to the applicable tax rate in subsections 1 through 4, reduced by sixty percent, and rounded to the nearest one-hundredth of one percent.

d. In lieu of each rate of tax imposed in subsections 1 through 4, for property passing from the estate of a decedent dying on or after January 1, 2024, but before January 1, 2025, there shall be imposed a rate of tax equal to the applicable tax rate in subsections 1 through 4, reduced by eighty percent, and rounded to the nearest one-hundredth of one percent. [C97, §1467; S13, §1481-a; C24, 27, 31, 35, 39, §7313; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §450.10; 81 Acts, ch 147, §4] 91 Acts, ch 159, §25 – 27; 94 Acts, ch 1046, §11; 97 Acts, ch 1, §3 – 8; 2001 Acts, ch 116, §24, 28; 2011 Acts, ch 34, §101; 2021 Acts, ch 177, §11, 15, 16 Subsection 7 applies retroactively to the estates of decedents dying on or after January 1, 2021; 2021 Acts, ch 177, §16 \n

Notes of Decisions
Cited in 13 cases, 1957–2018 · leading case: Beverly Gardiner Nance v. Iowa Dep't of Revenue, 908 N.W.2d 261 (Iowa 2018).
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Beverly Gardiner Nance v. Iowa Dep't of Revenue, 908 N.W.2d 261 (Iowa 2018). · cites it 4× “Hursh, Annotation, Succession, Estate, or Inheritance Tax as Affected by Compromise of Will Contest, 36 A.L.R.2d 917 , § 2[a] (1954). 33 Another issue is whether we need to give deference to the Department of Revenue’s interpretation of the term “passes” as used in Iowa Code…”
Varnum v. Brien, 763 N.W.2d 862 (Iowa 2009). “§ 450.10(6) (spousal allowance for surviving spouse); id.”
Tyler v. Iowa Dep't of Revenue, 904 N.W.2d 162 (Iowa 2017). · cites it 2× “See Iowa Code § 450.10 (2). As we see it, the legislature basically had three choices.”
Farnsworth v. Iowa State Tax Comm'n, 132 N.W.2d 477 (Iowa 1965). · cites it 8× “It is not eon-tended it was not taxable, but controversy arises over , whether the tax should be assessed at the rate of five percent fixed by section 450.10(2), or at ten percent as provided in section 450.”
De Sauvage v. State Tax Comm'n, 104 N.W.2d 600 (Iowa 1960). · cites it 2× “any interest therein shall pass to heirs, devisees, or other beneficiaries subject to the tax imposed by this chapter, who are aliens, nonresidents of the United States, the same shall be subject to a tax of twenty percent of its true value except when such foreign beneficiaries…”
Est. of Radovich, 308 P.2d 14 (Cal. 1957). “She *133 did not have the status of an adopted child or any right of inheritance as such.”
In Re Millard's Est., 105 N.W.2d 95 (Iowa 1960). · cites it 2× “" It is agreed the rate of the tax is fixed at 10 per cent by section 450.10, subd. 3, Code, 1958, I.C.”
Matter of Est. of Bliven, 236 N.W.2d 366 (Iowa 1975). “J.S. Taxation § 1143a, b, c. By virtue of the fact that Amy C.”
Friday v. Exch. State Bank, 438 N.W.2d 228 (Iowa Ct. App. 1989). · cites it 2× “2 which provides: An amount equal to the federal estate tax credit for state death taxes as allowed in the Internal Revenue Code of 1954 is hereby imposed upon every transfer of the net estate of every decedent, being a resident of, or owning property in this state, as herein…”
Union Bank & Trust Co. v. Iowa State Tax Comm'n, 105 N.W.2d 95 (Iowa 1960). · cites it 2× “” It is agreed the rate of the tax is fixed at 10% by section 450.10(3), Code, 1958. Also that the value of the estate is its appraised value at the death of the life tenant.”
Haney v. Kitchen, 690 N.W.2d 675 (Iowa 2005). “§ 450.10(3). Under the agreement entered into by the Objectors to contest the 1994 will, each objector, including Tod Haney, jointly agreed to pursue the action to set aside the will.”
Kirkwood v. Citizens Nat'l Trust & Sav. Bank, 308 P.2d 14 (Cal. 1957). “” (Code of Iowa 1939, § 7313 [now Iowa Code, § 450.10].) After reviewing the authorities, the court stated: “The conclusion that Grace S.”
Show all 13 citing cases →
Iowa Code § 450.10(2): 1 case
Farnsworth v. Iowa State Tax Comm'n, 132 N.W.2d 477 (Iowa 1965). “It is not eon-tended it was not taxable, but controversy arises over , whether the tax should be assessed at the rate of five percent fixed by section 450.10(2), or at ten percent as provided in section 450.”
Iowa Code § 450.10(3): 3 cases
Farnsworth v. Iowa State Tax Comm'n, 132 N.W.2d 477 (Iowa 1965). “It is not eon-tended it was not taxable, but controversy arises over , whether the tax should be assessed at the rate of five percent fixed by section 450.10(2), or at ten percent as provided in section 450.”
Union Bank & Trust Co. v. Iowa State Tax Comm'n, 105 N.W.2d 95 (Iowa 1960). “” It is agreed the rate of the tax is fixed at 10% by section 450.10(3), Code, 1958. Also that the value of the estate is its appraised value at the death of the life tenant.”
Haney v. Kitchen, 690 N.W.2d 675 (Iowa 2005). “§ 450.10(3). Under the agreement entered into by the Objectors to contest the 1994 will, each objector, including Tod Haney, jointly agreed to pursue the action to set aside the will.”
Iowa Code § 450.10(6): 2 cases
Varnum v. Brien, 763 N.W.2d 862 (Iowa 2009). “§ 450.10(6) (spousal allowance for surviving spouse); id.”
Katherine Varnum, Patricia Hyde, Dawn Barbouroske, Jennifer Barbouroske, Jason Morgan, Charles Swaggerty, David Twombley, Lawrence Hoch, William M. Musser, Otter Dreaming, Ingrid Olson, & Reva Evans Vs. Timothy J. Brien, In His Off. Capacities As The Polk Cnty. Recorder & Polk Cnty. Registrar (Iowa 2009).
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