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In a bid to increase state revenue and support various public services, Iowa has announced new taxation measures set to take effect beginning in 2026. The announcement, made by Governor John Doe on September 18, 2025, outlines several key changes to the state's tax system aimed at bringing in additional funds.One of the most notable changes is the introduction of a new top income tax bracket for high-earners. Individuals making over $250,000 a year and couples making over $500,000 will now be subject to a higher tax rate in an effort to increase progressivity in the state's tax system. This move is expected to generate millions of dollars in additional revenue for Iowa.Furthermore, the state will be implementing a tax on online sales, which has become increasingly common as e-commerce continues to grow in popularity. Previously, online retailers were not required to collect sales tax in Iowa, giving them a competitive advantage over brick-and-mortar stores. With this new measure, all online sales will be subject to sales tax, leveling the playing field for all businesses operating in the state.In addition to these changes, Governor Doe also announced plans to increase the state's gas tax by 5 cents per gallon. This increase is intended to fund much-needed infrastructure improvements across Iowa's roadways, bridges, and public transportation systems. The governor emphasized the importance of investing in the state's infrastructure to support economic growth and improve the quality of life for all Iowans.Overall, these new taxation measures are expected to generate a significant increase in state revenue, which will be used to support vital public services such as education, healthcare, and public safety. Governor Doe expressed confidence that these changes will benefit all residents of Iowa and ensure a prosperous future for the state.The new taxation measures will go into effect on January 1, 2026, giving taxpayers and businesses ample time to prepare for the changes ahead. The Iowa Department of Revenue will be providing additional information and guidance to help individuals and businesses navigate the new tax system and understand their obligations moving forward.