Iowa’s budget increased cumulatively less than pop+inf in state funds but more than pop+inf in all funds from 2016-25.
- The 2025 state funds budget is $305 million higher than it would have had spending grown at the rate of population growth plus inflation over the past decade.
- Because the state funds budget grew slower than population growth plus inflation for much of the last ten years, the state spent $4.4 billion less than possible.
- The 2025 all funds budget is $3.0 billion higher than it would have been had spending grown at the rate of population growth plus inflation over the past decade.
- Because the all funds budget grew faster than population growth plus inflation over the past decade, the state spent $14.7 billion too much.



State Funds Budget Data
- Estimated FY 2026 Only State Funds Budget ($ Billions): $ 22.75
- FY 2027 Only State Funds Budget Limit ($ Billions): $ 23.51
- FY 2027 Only State Funds Budget Limit Growth (%): 3.36%
- Cost per person of only state funds budgeting more than pop+inf over the last decade in 2025 budget: $ 5,006
- Cost per family of 4 of only state funds budgeting more than pop+inf over the last decade in 2025 budget: $ 94
- Cumulative cost per person of only state funds budgeting more than pop+inf over the last decade from 2016-25: $ (1,373)
- Cumulative cost per family of 4 of only state funds budgeting more than pop+inf over the last decade from 2016-25: $ (5,493)
All Funds Budget Data
- Estimated FY 2026 All Funds Budget ($ Billions): $ 34.03
- FY 2027 All Funds Budget Limit ($ Billions): $ 35.17
- FY 2027 All Funds Budget Limit Growth (%): 3.4%
- Cost per person of all funds budgeting more than pop+inf over the last decade in 2025 budget: $ 6,895
- Cost per family of 4 of all funds budgeting more than pop+inf over the last decade in 2025 budget: $ 937
- Cumulative cost per person of all funds budgeting more than pop+inf over the last decade from 2016-25: $ 4,545
- Cumulative cost per family of 4 of all funds budgeting more than pop+inf over the last decade from 2016-25: $ 18,178
Other Economic and Fiscal Considerations
- Economic Freedom of North America (2023) (Rank): 17 [Fraser Institute]
- Economic Freedom (2022) (Rank): 31 [Cato Institute]
- Fiscal Policy (2022) (Rank): 43 [Cato Institute]
- Regulatory Policy (2022) (Rank): 2 [Cato Institute]
- State Tax Collections Per Capita (FY2021) ($): $3,701 [Tax Foundation]
- State Tax Collections Per Capita (FY2021) (Rank): 24 [Tax Foundation]
- State-Local Total Tax Burden per Capita (2022) ($): $6,086 [Tax Foundation]
- State-Local Tax Burden per Capita (2022) (%): 11.2% [Tax Foundation]
- State-Local Tax Burden per Capita (2022) (Rank): 34 [Tax Foundation]
- Top Income Tax Rate (2026) (%): 3.8% [Tax Foundation]
- Top Income Tax Rate (2026) (Rank): 17 [Tax Foundation]
- Flat/Progressive/Zero Income Tax (2026): F [Tax Foundation]
- Overall State Tax Competitiveness Index (2026) (Rank): 17 [Tax Foundation]
- Top Corporate Income Tax Rate (2026) (%): 7.1% [Tax Foundation]
- State-Local Sales Tax Rate (2026) (%): 6.9% [Tax Foundation]
- State-Local Sales Tax Rate (2026) (Rank): 11 [Tax Foundation]
- Property Taxes Paid as a Percentage of Owner-Occupied Housing Value (2023) (%): 1.4% [Tax Foundation]
- Property Taxes Paid as a Percentage of Owner-Occupied Housing Value (2026) (Rank): 33 [Tax Foundation]
- Economic Outlook (2025) (Rank): 30 [American Legislative Exchange Council]
- Economic Performance Rankings, 2013-2023 (2025) (Rank): 32 [American Legislative Exchange Council]
- Value for Tax and Expenditure Limits (0-3): 0 [American Legislative Exchange Council]
- Tax and Expenditure Limit (Rank): 32 [American Legislative Exchange Council]
- Right-to-Work Law (2025) (Y/N): Y [American Legislative Exchange Council]
- State Spending per Capita (2022) ($): $ 7,000 [US Government Spending]
- State Spending per Capita (2022) (Rank): 22 [US Government Spending]
- Local Spending per Capita (2022) ($): $ 6,683 [US Government Spending]
- Local Spending per Capita (2022) (Rank): 39 [US Government Spending]
- Official Poverty Rate (2022-24) (%): 8.4 [Census Bureau]
- Official Poverty Rate (2022-24) (Rank): 11 [Census Bureau]
- Supplemental Poverty Rate (2022-24) (%): 10.8 [Census Bureau]
- Supplemental Poverty Rate (2022-24) (Rank): 27 [Census Bureau]
- Labor Force Participation Rate (Dec 2025) (%): 67.7% [Bureau of Labor Statistics]
- Labor Force Participation Rate (Dec 2025) (Rank): 5 [Bureau of Labor Statistics]
- Real Private Gross Domestic Product (2024) (Millions of $): $ 185,236 [Bureau of Economic Analysis]
- Real Private GDP (2024) (Rank): 31 [Bureau of Economic Analysis]
- Real Private GDP per Capita (2024): $ 57,341 [Bureau of Economic Analysis]
- Real Private GDP per Capita (2024) (Rank): 19 [Bureau of Economic Analysis]
- Real Private GDP Growth (2015-24) (%): 12.2% [US Bureau of Economic Analysis]
- Real Private GDP Growth (2015-24) (Rank): 39 [US Bureau of Economic Analysis]