PolicyEngine · PavelMakarchuk · Oct 14, 2024 · Oct 31, 2024 · Oct 31, 2024 · Oct 31, 2024
diff --git a/changelog_entry.yaml b/changelog_entry.yaml
@@ -0,0 +1,4 @@
+- bump: patch
+  changes:
+    fixed:
+    - Iowa Income Tax Rates 2023-2026.
diff --git a/policyengine_us/parameters/gov/states/ia/tax/income/rates/post_2023/joint.yaml b/policyengine_us/parameters/gov/states/ia/tax/income/rates/post_2023/joint.yaml
@@ -0,0 +1,45 @@
+description: Iowa levies income taxes at these rates for all joint filers post 2023.
+brackets:
+  - threshold:
+      2023-01-01: 0
+    rate:
+      2023-01-01: 0.044
+      2024-01-01: 0.04
+      2026-01-01: 0.039
+  - threshold:
+      2023-01-01: 12_000
+      2024-01-01: 12_420
+      2026-01-01: .inf
+    rate:
+      2023-01-01: 0.0482
+  - threshold:
+      2023-01-01: 60_000
+      2024-01-01: 62_100
+      2025-01-01: .inf
+    rate:
+      2023-01-01: 0.057
+  - threshold:
+      2023-01-01: 150_000 
+      2024-01-01: .inf
+    rate:
+      2023-01-01: 0.06
+  - threshold:
+      2023-01-01: .inf
+
+
+metadata:
+  type: marginal_rate
+  threshold_unit: currency-USD
+  rate_unit: /1
+  threshold_period: year
+  label: Iowa joint filers income tax rates and brackets post 2023
+  reference:
+  # the legal code does not represent the newest legislative changes
+  - title: Iowa Senate File 2442
+    href: https://www.legis.iowa.gov/legislation/BillBook?ga=90&ba=SF%202442
+  - title: IDR Announces 2023 Interest Rates, Deductions, Income Tax Brackets
+    href: https://revenue.iowa.gov/taxes/tax-guidance/individual-income-tax/2023-changes-iowa-individual-income-tax
+  - title: 2023 IA 1041 Instructions
+    href: https://tax.iowa.gov/sites/default/files/2023-11/IA1041Inst%2863002%29.pdf#page=4
+  - title: IDR Announces 2024 Interest Rates, Deductions, Income Tax Brackets
+    href: https://revenue.iowa.gov/press-release/2023-10-25/idr-announces-2024-individual-income-tax-brackets-and-interest-rates
diff --git a/policyengine_us/parameters/gov/states/ia/tax/income/rates/post_2023/other.yaml b/policyengine_us/parameters/gov/states/ia/tax/income/rates/post_2023/other.yaml
@@ -0,0 +1,45 @@
+description: Iowa levies income taxes at these rates for all filers other than joint filers post 2023.
+brackets:
+  - threshold:
+      2023-01-01: 0
+    rate:
+      2023-01-01: 0.044
+      2024-01-01: 0.04
+      2026-01-01: 0.039
+  - threshold:
+      2023-01-01: 6_000
+      2024-01-01: 6_210
+      2026-01-01: .inf
+    rate:
+      2023-01-01: 0.0482
+  - threshold:
+      2023-01-01: 30_000
+      2024-01-01: 31_050
+      2025-01-01: .inf
+    rate:
+      2023-01-01: 0.057
+  - threshold:
+      2023-01-01: 75_000 
+      2024-01-01: .inf
+    rate:
+      2023-01-01: 0.06
+  - threshold:
+      2023-01-01: .inf
+
+
+metadata:
+  type: marginal_rate
+  threshold_unit: currency-USD
+  rate_unit: /1
+  threshold_period: year
+  label: Iowa other filers income tax rates and brackets post 2023
+  reference:
+    # The Iowa legal code does not represent the newest legislative changes
+    - title: Iowa Senate File 2442
+      href: https://www.legis.iowa.gov/legislation/BillBook?ga=90&ba=SF%202442
+    - title: IDR Announces 2023 Interest Rates, Deductions, Income Tax Brackets
+      href: https://revenue.iowa.gov/taxes/tax-guidance/individual-income-tax/2023-changes-iowa-individual-income-tax
+    - title: 2023 IA 1041 Instructions
+      href: https://tax.iowa.gov/sites/default/files/2023-11/IA1041Inst%2863002%29.pdf#page=4
+    - title: IDR Announces 2024 Interest Rates, Deductions, Income Tax Brackets
+      href: https://revenue.iowa.gov/press-release/2023-10-25/idr-announces-2024-individual-income-tax-brackets-and-interest-rates
diff --git a/...yengine_us/parameters/gov/states/ia/tax/income/rates/post_2023/tax_structure_applies.yaml b/...yengine_us/parameters/gov/states/ia/tax/income/rates/post_2023/tax_structure_applies.yaml
@@ -0,0 +1,13 @@
+description: Iowa applies a new income tax rate structure if this is true.
+values:
+  2020-01-01: false
+  2023-01-01: true
+metadata:
+  unit: bool
+  period: year
+  label: Iowa post 2023 income tax structure applies
+  reference:
+    - title: Iowa Senate File 2442
+      href: https://www.legis.iowa.gov/legislation/BillBook?ga=90&ba=SF%202442
+    - title: IDR Announces 2023 Interest Rates, Deductions, Income Tax Brackets
+      href: https://revenue.iowa.gov/taxes/tax-guidance/individual-income-tax/2023-changes-iowa-individual-income-tax
diff --git a/...s/gov/states/ia/tax/income/rates/all.yaml → ...tes/ia/tax/income/rates/pre_2023/all.yaml b/...s/gov/states/ia/tax/income/rates/all.yaml → ...tes/ia/tax/income/rates/pre_2023/all.yaml
@@ -1,63 +1,47 @@
-description: Iowa levies income taxes at these rates for all filers.
+description: Iowa levies income taxes at these rates for all filers pre 2023.
 brackets:
   - threshold:
       2021-01-01: 0
     rate:
       2021-01-01: 0.0033
-      2023-01-01: 0.044
-      2026-01-01: 0.039
   - threshold:
       2021-01-01: 1_676
       2022-01-01: 1_743
-      2023-01-01: 6_000
-      2026-01-01: .inf
     rate:
       2021-01-01: 0.0067
-      2023-01-01: 0.0482
   - threshold:
       2021-01-01: 3_352
       2022-01-01: 3_486
-      2023-01-01: 30_000
-      2025-01-01: .inf
     rate:
       2021-01-01: 0.0225
-      2023-01-01: 0.057
   - threshold:
       2021-01-01: 6_704
       2022-01-01: 6_972
-      2023-01-01: 75_000 
-      2024-01-01: .inf
     rate:
       2021-01-01: 0.0414
-      2023-01-01: 0.06 
   - threshold:
       2021-01-01: 15_084
       2022-01-01: 15_687
-      2023-01-01: .inf
     rate:
       2021-01-01: 0.0563
   - threshold:
       2021-01-01: 25_140
       2022-01-01: 26_145
-      2023-01-01: .inf
     rate:
       2021-01-01: 0.0596
   - threshold:
       2021-01-01: 33_520
       2022-01-01: 34_860
-      2023-01-01: .inf
     rate:
       2021-01-01: 0.0625
   - threshold:
       2021-01-01: 50_280
       2022-01-01: 52_290
-      2023-01-01: .inf
     rate:
       2021-01-01: 0.0744
   - threshold:
       2021-01-01: 75_420
       2022-01-01: 78_435
-      2023-01-01: .inf
     rate:
       2021-01-01: 0.0853
 

diff --git a/policyengine_us/tests/policy/baseline/gov/states/ia/tax/income/ia_regular_tax_indiv.yaml b/policyengine_us/tests/policy/baseline/gov/states/ia/tax/income/ia_regular_tax_indiv.yaml
@@ -40,6 +40,7 @@
   input:
     ia_taxable_income_indiv: 6_000
     state_code: IA
+    filing_status: SEPARATE
   output:  
     ia_regular_tax_indiv: 264
 
@@ -49,6 +50,7 @@
   input:
     ia_taxable_income_indiv: 7_000
     state_code: IA
+    filing_status: SEPARATE
   output:  
     ia_regular_tax_indiv: 312.2
 
@@ -58,6 +60,7 @@
   input:
     ia_taxable_income_indiv: 30_000
     state_code: IA
+    filing_status: SEPARATE
   output:  
     ia_regular_tax_indiv: 1_420.8   #6_000*0.044+24_000*0.0482=1420.8
 
@@ -67,6 +70,7 @@
   input:
     ia_taxable_income_indiv: 80_000
     state_code: IA
+    filing_status: SINGLE
   output:  
     ia_regular_tax_indiv: 4_285.8 
 
@@ -76,42 +80,47 @@
   input:
     ia_taxable_income_indiv: 30_000
     state_code: IA
+    filing_status: SINGLE
   output:  
-    ia_regular_tax_indiv: 1_420.8
+    ia_regular_tax_indiv: 1_395.08
 
 - name: IA regular tax indiv unit test 10, using all rates 2024
   absolute_error_margin: 0.5
   period: 2024
   input:
     ia_taxable_income_indiv: 80_000
     state_code: IA
+    filing_status: SINGLE
   output:  
-    ia_regular_tax_indiv: 4_270.8
+    ia_regular_tax_indiv: 4_235.83
 
 - name: IA regular tax indiv unit test 11, using two rates 2025
   absolute_error_margin: 0.5
   period: 2025
   input:
     ia_taxable_income_indiv: 30_000
     state_code: IA
+    filing_status: SEPARATE
   output:  
-    ia_regular_tax_indiv: 1_420.8
+    ia_regular_tax_indiv: 1_395.08
 
 - name: IA regular tax indiv unit test 12, using all rates 2025
   absolute_error_margin: 0.5
   period: 2025
   input:
     ia_taxable_income_indiv: 80_000
     state_code: IA
+    filing_status: SEPARATE
   output:  
-    ia_regular_tax_indiv: 3_830.8 
+    ia_regular_tax_indiv: 3_805.08
 
 - name: IA regular tax indiv unit test 13, using two rates 2026
   absolute_error_margin: 0.5
   period: 2026 
   input:
     ia_taxable_income_indiv: 30_000
     state_code: IA
+    filing_status: SEPARATE
   output:  
     ia_regular_tax_indiv: 1_170
 
@@ -121,5 +130,6 @@
   input:
     ia_taxable_income_indiv: 80_000
     state_code: IA
+    filing_status: SEPARATE
   output:  
     ia_regular_tax_indiv: 3_120
diff --git a/policyengine_us/tests/policy/baseline/gov/states/ia/tax/income/ia_regular_tax_joint.yaml b/policyengine_us/tests/policy/baseline/gov/states/ia/tax/income/ia_regular_tax_joint.yaml
@@ -40,6 +40,7 @@
   input:
     ia_taxable_income_joint: 6_000
     state_code: IA
+    filing_status: JOINT
   output:  
     ia_regular_tax_joint: 264
 
@@ -49,69 +50,77 @@
   input:
     ia_taxable_income_joint: 7_000
     state_code: IA
+    filing_status: JOINT
   output:  
-    ia_regular_tax_joint: 312.2
+    ia_regular_tax_joint: 308
 
 - name: IA regular tax joint unit test 7, using two rates 2023
   absolute_error_margin: 0.5
   period: 2023
   input:
     ia_taxable_income_joint: 30_000
     state_code: IA
+    filing_status: JOINT
   output:  
-    ia_regular_tax_joint: 1_420.8   #6_000*0.044+24_000*0.0482=1420.8
+    ia_regular_tax_joint: 1_395.6
 
 - name: IA regular tax joint unit test 8, using all rates 2023
   absolute_error_margin: 0.5
   period: 2023
   input:
     ia_taxable_income_joint: 80_000
     state_code: IA
+    filing_status: JOINT
   output:  
-    ia_regular_tax_joint: 4_285.8 
+    ia_regular_tax_joint: 3_981.6
 
 - name: IA regular tax joint unit test 9, using two rates 2024
   absolute_error_margin: 0.5
   period: 2024
   input:
     ia_taxable_income_joint: 30_000
     state_code: IA
+    filing_status: JOINT
   output:  
-    ia_regular_tax_joint: 1_420.8
+    ia_regular_tax_joint: 1_344.2
 
 - name: IA regular tax joint unit test 10, using all rates 2024
   absolute_error_margin: 0.5
   period: 2024
   input:
     ia_taxable_income_joint: 80_000
     state_code: IA
+    filing_status: JOINT
   output:  
-    ia_regular_tax_joint: 4_270.8
+    ia_regular_tax_joint: 3_911.7
 
 - name: IA regular tax joint unit test 11, using two rates 2025
   absolute_error_margin: 0.5
   period: 2025
   input:
     ia_taxable_income_joint: 30_000
     state_code: IA
+    filing_status: JOINT
   output:  
-    ia_regular_tax_joint: 1_420.8
+    ia_regular_tax_joint: 1_344.2
 
 - name: IA regular tax joint unit test 12, using all rates 2025
   absolute_error_margin: 0.5
   period: 2025
   input:
     ia_taxable_income_joint: 80_000
     state_code: IA
+    filing_status: JOINT
   output:  
-    ia_regular_tax_joint: 3_830.8 
+    ia_regular_tax_joint: 3_754.2
 
 - name: IA regular tax joint unit test 13, using two rates 2026
   absolute_error_margin: 0.5
   period: 2026 
   input:
     ia_taxable_income_joint: 30_000
     state_code: IA
+    filing_status: JOINT
   output:  
     ia_regular_tax_joint: 1_170
 
@@ -121,5 +130,6 @@
   input:
     ia_taxable_income_joint: 80_000
     state_code: IA
+    filing_status: JOINT
   output:  
     ia_regular_tax_joint: 3_120
diff --git a/policyengine_us/variables/gov/states/ia/tax/income/ia_regular_tax_indiv.py b/policyengine_us/variables/gov/states/ia/tax/income/ia_regular_tax_indiv.py
@@ -18,5 +18,16 @@ class ia_regular_tax_indiv(Variable):
 
     def formula(person, period, parameters):
         taxable_income = person("ia_taxable_income_indiv", period)
-        p = parameters(period).gov.states.ia.tax.income
-        return p.rates.all.calc(max_(0, taxable_income))
+        p = parameters(period).gov.states.ia.tax.income.rates
+        if p.post_2023.tax_structure_applies:
+            filing_status = person.tax_unit(
+                "filing_status",
+                period,
+            )
+            joint = filing_status == filing_status.possible_values.JOINT
+            return where(
+                joint,
+                p.post_2023.joint.calc(taxable_income),
+                p.post_2023.other.calc(taxable_income),
+            )
+        return p.pre_2023.all.calc(taxable_income)