If the economy is measured by gross domestic product, in 2005 it was about $124 million. If measured by gross state product, for 2005 it was US$113.5 billion. Its per capita income for 2006 was US $23,340. The role of agriculture in Iowa's economy can be measured in multiple ways, but its total impact, including agriculture-affiliated business, has been measured as 16.4% (in terms of value added) and 24.3% (in terms of total output). This is lower than the economic impact in Iowa of non-farm manufacturing, which accounts for 22.4% of total value added and 26.5% of total output. Iowa's main agricultural outputs are hogs, corn, soybeans, oats, cattle, eggs and dairy products. Its industrial outputs are food processing, machinery, electric equipment, chemical products, publishing and primary metals. Iowa produces the nation's largest amount of ethanol. Des Moines also serves as a center for the insurance industry.

Iowa imposes taxes on net state income of individuals and estates and trusts. There are currently nine income tax brackets, ranging from 0.36% to 8.98%. The state sales tax rate is 5%, with non-prepared food having no tax. Iowa has two local option sales taxes that may be imposed by counties after an election at which the majority of voters favors the tax. They are in addition to the 5% state sales tax. The regular local option tax is imposed on the gross receipts from sales of tangible personal property. It usually remains in effect until it is repealed, but the ordinance may include a sunset clause. The school infrastructure local option tax is automatically repealed 10 years after it is imposed, unless the ballot imposes a shorter time frame.

Property tax is levied on the taxable value of real property, that is, mostly land, buildings, structures, and other improvements that are constructed on or in the land, attached to the land or placed upon a foundation. Typical improvements include a building, house or mobile home, fences, and paving. The following five classes of real property are evaluated: residential, agricultural, commercial, industrial and utilities/railroad (which is assessed at the state level). Homeowners pay less than half of the property tax collected each year in Iowa. Farmers pay 21%, and businesses and industry, a total of 23%. Utility companies, including railroads, pay 10%. Iowa has more than 2,000 taxing authorities. Most property is taxed by more than one taxing authority. The tax rate differs in each locality and is a composite of county, city or rural township, school district and special levies.

Companies

Iowa is the headquarters for seven of the top 1,000 companies for revenue. They include Principal Financial, Rockwell Collins, Casey's General Stores, and HNI. Iowa is also headquarters to other companies including Hy-Vee a major grocery store in Iowa and six other states, Kum & Go gas stations, Von Maur (a department store), Pioneer Hi-Bred, and McLeodUSA.

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