There are a record number of Iowans in the workforce now and that $251 million in personal income taxes paid to the state last month was 6.4 percent more than Iowans paid in July of last year.
Many Iowans have their income taxes withheld from their paychecks. There was a four percent increase in withholding payments in July, along with a big surge of nearly 21 percent in estimated income tax payments to the state. Estimated payments come from farmers, retirees and self-employed Iowans who do not have a regular paycheck and must estimate their annual income and the income taxes they’ll owe the state.
The monthly report from the Legislative Services Agency also shows corporate income tax payments to the state were down this July compared to July of 2014. Sales tax collections were up about two percent. A panel of experts has predicted corporate income taxes will not be as robust this year, but the panel is predicting a five percent increase in sales tax collections for the entire 12-month fiscal year.