The Iowa Department of Revenue has announced 2016 interest rates on overpayments and underpayments of Iowa taxes and the standard deduction and tax brackets for personal income taxpayers. The annual interest rate for overdue taxes and refunds in 2016 will remain at 5%. The monthly rate for 2016 will also remain unchanged at 0.4%. The daily rate for 2016 will be 0.013661%. The daily rate for 2016 varies slightly from the 2015 daily rate because 2016 is a leap year.
The department has also determined the standard deduction amounts and tax brackets for the 2016 tax year, for income taxes due and payable in calendar year 2017. The 2016 standard deduction for single taxpayers or married taxpayers filing separately will be $1,970. The 2016 standard deduction for married filing jointly taxpayers will be $4,860. The indexed 2016 income tax brackets are also available.
The release is available on the department’s website at https://tax.iowa.gov/press-release/iowa-department-revenue-announces-interest-rates-standard-deduction-amounts-and-tax.
Release, Iowa Department of Revenue, October 14, 2015