2024 Rank: 28
2023 Rank: 26
Iowa is the 28th-best state primarily by virtue of its reciprocity agreement with Illinois exempting 45.7 percent of incoming commuters. The state does provide a minor filing threshold, but offers no withholding threshold at all.
Category | Current Law | Score | Total Possible |
Filing threshold | Local wage threshold: $1,000 | 2 | 10 |
Reciprocity agreements | Illinois | 4.57 | 10 |
Convenience of the employer rule | None | 0 | 0 |
Individual Income Tax Code | 2.56 | 5 | |
Withholding threshold | None | 0 | 10 |
Total Score | 9.13 | 35 |
Ways to Improve:
- Pass filing and withholding thresholds of greater than 30 days
- Seek reciprocity agreements with:
- Nebraska: 22.49 percent of incoming commuters
For further ideas for how your state could improve, see our Example Remote Work Provision.
Read the report here, or click below to read how your state performs on the remote worker index.
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