Business Environment

Iowa: Among the Nation’s Best for Business

A right to work state, Iowa has a strong track record of enacting progressive, pro-business legislation that creates favorable conditions for existing companies, as well as those looking to see what the state has to offer.  

A proactive and responsive business tax, regulatory and legal framework position Iowa among the nation’s most “business friendly” states.

Iowa's nine largest metropolitan areas all ranked among the best places in America to start a business or career.

Iowa perennially ranks among the best states for cost of doing business.

Iowa lawmakers recently lowered Iowa’s insurance premium tax, for example – now at one percent, Iowa’s rate is among the nation’s lowest. Iowa doesn’t charge premium taxes on the sales of annuities or qualified life insurance plans, either. Nor does the state assess additional surtaxes or income taxes on insurance carriers.

Iowa’s corporate income tax is a single-factor, non-unitary tax, based only on the percentage of total sales income within the state; multiple tax credit programs and a 50 percent deductibility of federal taxes further eases the state’s corporate tax.


Iowa's worker's compensation costs are among the nation's lowest. The average cost of worker's compensation insurance for manufacturers in Iowa is 11% lower than the national average.

In addition, the state provides programs and resources to assist new and expanding businesses with business development funding, tax credits and programs, workforce recruitment and training, regulatory compliance and licensing, innovation support, exporting and international business development and more.