As part of the reform bill Governor Reynolds signed into law on June 16, 2021, Iowa's inheritance tax will be phased out over four years.
Iowa was one of just six states in the country to still impose an inheritance tax. Spouses, children, and even parents were already excluded from paying the inheritance tax, while nieces and nephews, siblings, domestic partners, and business partners of the deceased were required to pay.
After the bill signing, Governor Reynolds said, "Taxpayers win when you’ve got governors that are competing to create an environment that not only helps Iowans and Iowa families keep more of their money, but also creates an environment where businesses want to invest and grow, hire Iowans and really drive the quality of life that we want all Iowans to be able to enjoy."
Take a look at three situations where this change will help Iowans:
