Taxation

Hamilton County Courthouse  Main Street Looking West 

 

Iowa has some of the lowest taxes in the nation.  And, with Webster City, Iowa being designated as an Enterprise Zone, your company may qualify for added corporate income tax credits and property tax abatements that may run from 7-10 years.  Below you will find information on our local sales and property tax rates, as well as links to information on state tax rates and credits.   
Sales Tax

The sales tax in Webster City is 7.0%, which reflects a 6.0% state tax and a 1.0% local option sales tax that the City directs towards new infrastructure.  Sales taxes on certain utilities associated with the manufacturing of goods is exempt from the State Sales Tax.

Property Taxes

The current property tax levy rate is $39.66724 per $1,000 in assessed valuation.  Residential properties are taxed at 52.81660%, while commercial and industrial properties are taxed at 100%.  The current levy is broken out as follows:

 City 16.25106
 County   8.25920
 Local Schools  14.33725
 Community College    0.81973

State Taxes Rates

You can access additional information on state tax rates and credits through the Iowa Department of Revenue.
Iowa's corporate income tax is a single factor, non-unitary tax that only applies to income made on sales within Iowa.  Additionally, Iowa's corporate income tax is lowered by the 50% deductibility of federal income taxes paid.  And, Iowa is not a tax 'throwback' state.
Upon request Webster City Economic Development can calculate your estimated corporate income taxes for your first few years of operation in Iowa, as well as any estimated tax credits that would apply.