Iowa Estate Tax, TOD Deeds, Small Estates & Medicaid

Quick answers

Does Iowa have a state estate tax?

State estate tax: No (Iowa Code § 450.98 (inheritance tax repealed for deaths on/after Jan 1, 2025; S.F. 619, 2021)).

Does Iowa have an inheritance tax?

Inheritance tax: No (Iowa Code § 450.98 (inheritance tax repealed for deaths on/after Jan 1, 2025; S.F. 619, 2021)).

Can you use a transfer-on-death deed in Iowa?

Transfer-on-death deed for real estate: None — not available for real property. No TOD-deed statute — Iowa has not enacted the URPTODA; confirm with the county recorder

What is the Medicaid look-back period in Iowa?

Look-back period: 60 months for transfers made on or after February 8, 2006 (Iowa Medicaid Employees Manual, Chapter D; Transfer-of-assets section revised September 13, 2024).

Does Iowa tax Social Security benefits?

Social Security benefits: Exempt (revenue.iowa.gov).

State estate tax

Estate-tax dataset 2026.v2

State estate tax: NoVerified
Source: Iowa Code § 450.98 (inheritance tax repealed for deaths on/after Jan 1, 2025; S.F. 619, 2021) · Checked July 18, 2026

Full detail: Iowa estate and inheritance tax page

Inheritance tax

Estate-tax dataset 2026.v2

Inheritance tax: NoVerified
Source: Iowa Code § 450.98 (inheritance tax repealed for deaths on/after Jan 1, 2025; S.F. 619, 2021) · Checked July 18, 2026

Full detail: Iowa estate and inheritance tax page

Transfer-on-death deed

Transfer-on-death deed for real estate

None — not available for real propertyNot primary-verified

No TOD-deed statute — Iowa has not enacted the URPTODA; confirm with the county recorder

· Checked July 26, 2026

Controlling statute

Not primary-verified

No TOD-deed statute — Iowa has not enacted the URPTODA; confirm with the county recorder

· Checked July 26, 2026

Full detail: Iowa transfer-on-death deed page

Small-estate procedure

Current rule: $50,000 personal property; no real property; affidavit after 90 daysVerified
Source: Iowa Code § 633.356 · Effective: 2026 · Checked August 23, 2026

Full detail: Iowa small-estate procedure page

Medicaid long-term-care eligibility

Medicaid dataset 2026.v16

Institutional long-term-care income limit: $2,982 per monthVerified
Applies to: institutionalized applicant; an income trust may be available above the cap under Iowa's separate trust ceiling.
Source: Iowa Medicaid Employees Manual, Chapter F · Effective: Revised May 22, 2026 · Checked November 14, 2026
Applicant resource limit after spousal attribution: $2,000Verified
Applies to: institutionalized applicant after resources are divided with a community spouse.
Source: Iowa Medicaid 2026 standards general letter · Effective: Effective January 1, 2026 · Checked November 14, 2026
Community-spouse resource allowance: $32,532 minimum to $162,660 maximumVerified
Applies to: institutionalized applicant with a community spouse; one-half of combined resources within the stated range.
Source: Iowa Medicaid 2026 standards general letter · Effective: Effective January 1, 2026 · Checked November 14, 2026
Minimum monthly maintenance-needs allowance: $4,066.50 per month for calendar year 2026Verified
Applies to: institutionalized applicant with a community spouse.
Source: Iowa HHS General Letter No. 8-D-113 (May 22, 2026), Employees' Manual Title 8, Chapter D · Also: Iowa Administrative Code rule 441-75.83(2)"d"(3) · Effective: Effective Date January 1, 2026 · Checked November 14, 2026
Maximum monthly maintenance-needs allowance: $4,066.50 per month for calendar year 2026Verified
Applies to: institutionalized applicant with a community spouse.
Source: Iowa HHS General Letter No. 8-D-113 (May 22, 2026), Employees' Manual Title 8, Chapter D · Also: Iowa Administrative Code rule 441-75.83(2)"d"(3) · Also: CMS updated 2026 SSI and spousal-impoverishment standards (April 27, 2026) · Effective: Effective Date January 1, 2026 · Checked November 14, 2026
Home-equity limit: $752,000Verified
Applies to: applicant whose home is otherwise subject to the substantial-home-equity rule.
Source: Iowa Medicaid 2026 standards general letter · Effective: Effective January 1, 2026 · Checked November 14, 2026

Full detail: Iowa Medicaid eligibility page

Medicaid look-back

Medicaid dataset 2026.v16

Look-back period: 60 months for transfers made on or after February 8, 2006Verified
Source: Iowa Medicaid Employees Manual, Chapter D · Effective: Transfer-of-assets section revised September 13, 2024 · Checked September 5, 2026
Transfer-penalty divisor: $9,838.96 per month or $323.65 per dayVerified
Source: Iowa Medicaid long-term-care penalty divisors · Effective: Divisors effective July 1, 2026 through June 30, 2027 · Checked September 5, 2026
How the state administers the penalty: Iowa divides uncompensated value by the statewide average cost, retains fractional penalty days, and starts the penalty on the later of the transfer date or the date the person is otherwise eligible and receiving institutional care.Verified
Source: Iowa Medicaid Employees Manual, Chapter D · Effective: Transfer-of-assets section revised September 13, 2024 · Checked September 5, 2026

Full detail: Iowa Medicaid look-back page

Medicaid estate recovery

Medicaid dataset 2026.v16

Recovery scope: Iowa recovers all medical assistance paid for a member age 55 or older and for a qualifying permanently institutionalized member. The estate includes real and personal property, jointly held interests, retained life estates, trusts, and other legal interests held at death.Verified
Source: Iowa Administrative Code rule 441—75.28 · Also: Iowa Code § 249A.53 · Effective: ARC 9763C published November 26, 2025; effective January 1, 2026 · Checked November 14, 2026
Controlling authority: Iowa Code § 249A.53 and Iowa Administrative Code rule 441—75.28 govern the state's recovery claim.Verified
Source: Iowa Code § 249A.53 · Also: Iowa Administrative Code rule 441—75.28 · Effective: Iowa Code 2026 · Checked November 14, 2026
Exemptions and deferrals: Collection is waived to the extent it would reduce an estate amount received by a surviving spouse or by a surviving child who is under 21, blind, or permanently and totally disabled.Verified
Source: Iowa Administrative Code rule 441—75.28 · Effective: ARC 9763C published November 26, 2025; effective January 1, 2026 · Checked November 14, 2026
Hardship waiver: Undue hardship requires household income below 200% of the federal poverty level, household resources no greater than $10,000, and recovery that would endanger life or health by depriving the applicant of food, clothing, shelter, or medical care. A written request with verification is due within 30 days after notice.Verified
Source: Iowa Administrative Code rule 441—75.28 · Effective: ARC 9763C published November 26, 2025; effective January 1, 2026 · Checked November 14, 2026
Lien practice: Iowa does not use liens in its estate recovery program. The debt is collected from the member's estate after death, with interest accruing beginning six months after the death of the member, surviving spouse, or surviving child, or when a minor child reaches age 21.Verified
Source: Iowa HHS Employees' Manual, Title 8, Chapter D: Resources, Estate Recovery (Amount Due) · Effective: Page revised September 13, 2024 · Checked November 14, 2026

Full detail: Iowa Medicaid estate-recovery page

State income tax on retirement income

Retirement-income tax dataset 2026.v4

Social Security benefits: ExemptVerified
Social Security benefits are excluded from Iowa taxable income.
Source: revenue.iowa.gov · Checked August 15, 2026
Public pensions: Exempt when conditions are metVerified
Qualifying governmental retirement-plan income is excluded for an eligible recipient.
Disabled taxpayer or qualifying surviving spouse/survivor.
Source: Retirement Income Tax Guidance · Checked September 1, 2026
Private pensions: Exempt when conditions are metVerified
Qualifying private pension and annuity income is excluded for an eligible recipient; nonqualified annuities do not qualify.
Disabled taxpayer or qualifying surviving spouse/survivor.
Source: Retirement Income Tax Guidance · Checked September 1, 2026
IRA and 401(k) distributions: Exempt when conditions are metVerified
Qualifying IRA, Roth IRA, SEP, SIMPLE, 401(k), 457(b), ESOP, and Keogh distributions are excluded for an eligible recipient.
Disabled taxpayer or qualifying surviving spouse/survivor.
Source: Retirement Income Tax Guidance · Checked September 1, 2026
Military retirement pay: ExemptVerified
Iowa excludes qualifying military retirement pay and Survivor Benefit Plan payments to the extent included in federal adjusted gross income.
The payment must be from the U.S. Armed Forces, reserve components, or National Guard.
Qualifying Survivor Benefit Plan payments are included.
Only the federally included amount is excluded; mixed civil-service and military benefits require allocation.
Source: Military Tax Information · Effective: tax year 2014 · Checked September 3, 2026

Full detail: Retirement-income tax dataset, all states (JSON)

About this page

This page assembles entries from datasets the site already publishes; it adds no figure of its own. Entries marked “Not yet verified” or “Pending” have no primary-source value in the underlying dataset yet. Rules change, so confirm anything you plan to act on with the source, the state agency, or a licensed attorney.

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