No state death tax
Iowa Estate and Inheritance Tax in 2026
No current Iowa estate or inheritance tax on a 2026 or 2027 death. Iowa inheritance tax does not apply to deaths on or after January 1, 2025; an earlier death still follows the old rate rules.
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Iowa and federal death-tax estimate
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Full federal worksheet with credits, GST and payments · What each input means
Estimate federal estate tax after preparing the estate's valuations, deductions, gifts and valid additional exclusion. Historical liabilities, property in another jurisdiction and estate income require separate review.
The primary-source rule for Iowa
Iowa inheritance tax no longer applies to deaths on or after January 1, 2025. The old relationship-based rate sheets still concern earlier deaths. The date of death controls; receiving money in 2026 does not make a 2024 death subject to the new rule.
Iowa affidavit distributions after the 2025 change
Iowa Code § 633.356 permits an affidavit distribution when the gross value of personal property passing by will or intestacy is $50,000 or less. For deaths from January 1, 2025 the affidavit route is available only when there is no real property.
Nebraska's county inheritance tax can apply to Nebraska real estate owned by an Iowa resident. Open the Nebraska worksheet.
The 2025 inheritance repeal has a different timeline from estate tax
Iowa's current tax description confirms two dates: estate tax is inapplicable for deaths from 2005, and inheritance tax ends for deaths from 2025. That distinction matters when an executor finds a relationship-based rate sheet. A death in 2024 belongs to the former inheritance system even if the distribution arrives in 2026. A 2026 death is covered by the new no-inheritance-tax rule.
For current estates, do not treat the phaseout's last historical rate as a reduced 2026 rate. The covered tax has ended, rather than merely fallen to a smaller percentage. Likewise, an old IA 706 instruction can discuss trust or nonprobate property without creating a tax for a new death. Identify the governing year before carrying those instructions into an executor's working file.
Iowa families with Nebraska property or estate connections should review Nebraska's beneficiary system independently. Its exemption classes and calculation cannot be imported into Iowa. The federal estimate on this page is another separate layer: prepare lifetime gifts, allowed deductions and any valid additional exclusion before confirming the form, even when the Iowa transfer-tax amount is zero.
Sources reviewed October 1–2, 2026. Settlement statutes read October 5, 2026. Prepare federal inputs or compare Iowa with the other no-tax states.
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