Updated September 4, 2026. Quick answer: No, not for most retirees. Iowa fully exempts pension, IRA and 401(k) income, with no dollar cap, for taxpayers who are 55 or older, disabled, or a surviving spouse, covering public, private, federal and military pensions alike.
State retirement-income forms, line by line: Iowa retirement income exclusion.
Inherited an IRA? What the state’s own documents say about taxing those withdrawals: Iowa tax on inherited IRA withdrawals.
Hold a 403(b) or 457(b)? What the state’s own documents say about taxing those withdrawals: does Iowa tax 403(b) and 457(b) withdrawals.
The municipal fire and police system (MFPRSI), with its options and refund rules from its own handbook: Iowa MFPRSI retirement decisions.
Drawing a pension? Whether the state withholds tax from it, from its own documents: Iowa tax withholding on pension payments.
Selling your home? How the state taxes the profit, from its own tax documents: Does Iowa tax the profit from selling your home?.
Married, or planning for a spouse’s death? Whether the state is a community property state, from its own statutes: Is Iowa a community property state?.
The state’s income tax schedule: the Iowa tax brackets for 2026.
Withdrawing from an IRA or 401(k)? Whether the state withholds tax from it, from its own documents: Iowa tax withholding on IRA and 401(k) withdrawals.
Trusts have their own page: does Iowa tax trust income.
Dividends and interest have their own page: does Iowa tax dividends and interest.
Annuity payments have their own page: does Iowa tax annuity income.
Planning for what you leave behind? The state’s estate tax answer, from its own tax documents: Does Iowa have an estate tax?.
Military retired pay has its own page: does Iowa tax military retirement.
Saving for a child’s college? The state’s 529 break has its own page: Iowa 529 plan tax deduction.
Selling stocks, funds or real estate has its own page: does Iowa tax capital gains.
Withdrawals from a 401(k) or IRA have their own page: does Iowa tax 401(k) and IRA withdrawals.
Confidence note: high. This page is scoped to pension, IRA and 401(k) taxation specifically. For the state’s full retirement-tax picture (Social Security, tax rates, estate and probate), see how Iowa taxes retirement income generally.
How pensions and retirement-account withdrawals are taxed
| Public (state/local government) pensions | Fully exempt, no dollar cap, for taxpayers 55 or older, disabled, or a surviving spouse. |
|---|---|
| Private (employer) pensions | Fully exempt under the same rule as public pensions; the statute does not distinguish by employer type. |
| Federal government pensions (FERS/CSRS) | Structurally included in the same exemption, which covers “a governmental or other pension” without limitation by government level. |
| Military retirement pay | Fully exempt regardless of age, under a separate statutory clause from the general pension exemption. |
| IRA and 401(k)/403(b) distributions | Fully exempt for the same 55+/disabled/surviving-spouse group as pensions; traditional and Roth IRAs, 401(k), 457(b), SEP, SIMPLE and Keogh plans all qualify. Nonqualified annuities and nonqualified (section 409A) deferred compensation plans remain taxable, per Iowa Department of Revenue guidance. |
| General retirement-income exclusion | Iowa’s pension exclusion is itself the general, uncapped exclusion for the 55+/disabled/surviving-spouse group, effective tax years beginning January 1, 2023. |
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How our partner relationships workSocial Security
Social Security is never taxed by Iowa. Social Security has its own rules in every state; see the full breakdown in how Iowa taxes retirement income generally.
Figures verified against Iowa Code sec. 422.7 (2026 edition) and Iowa Department of Revenue retirement income tax guidance on September 30, 2026.
Statute and sources
Governing citation: Iowa Code sec. 422.7(19) (general pension/retirement exclusion), (20) (military retirement).
Read September 4, 2026.
Related: how Iowa taxes retirement income generally · does Iowa tax Roth conversions? · Roth conversion taxes, all 51 jurisdictions.
General information drawn from each state’s own published statutes and revenue-department guidance, not legal, tax or financial advice. Figures and exemption amounts are current as of the date in the quick answer, are set by state law, and can change by future legislation; any pending bill named on this page is not yet law. This page cannot see your own return, which governs. We are not a law firm, a tax adviser, or a fiduciary, and this is not personalized advice.