The U.S. state of Iowa will reduce its top corporate tax rate from 9.8% to 8.4% for tax year 2023, as the state's net corporate income tax receipts for fiscal year 2022 exceeded USD 850 million. Governor Kim Reynolds (R) issued a press release announcing the tax cut and a USD 1.91 billion budget surplus on 27 September 2022. The tax rate cut also results in a reduction of the number of corporate tax rates from three to two, which according to the Governor, "was not projected to happen until at least 2027."