What Every Iowan Needs to Know About 2025 Law Changes

A new year means new laws that we've got to keep up with.

In 2025, there will be quite a number of changes in the national and state government. Later this month, former President Donald Trump will take over as Commander In Chief for his second term.

On the local level, Iowa lawmakers have set in motion some new pieces of legislation that are going into effect this year.

Here are some of the biggest laws that will change things up for Iowans in 2025.

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Lower Income Tax Rate

There is a nationwide effort led by Republicans to implement flat tax systems. Now, Iowa will be following suit.

Iowa government officials are lowering the individual income tax rate from 5.7% to 3.8%. This will give the Hawkeye State the sixth lowest income tax rate in the United States, according to reports.

Critics of this new law, Senate File 2442, fear that the state will not have enough money to cover all of its planned expenses.

Increase in Specific Vehicle Registrations Cost

Iowans will be paying more money to get their vehicle registered in 2025.

Any individual in the state with a vehicle will have to pay an extra $10 for new registration. House File 674 will require you to pay $30 instead of $20 to get your initial vehicle title, replace a lost title, or get a brand new title when you buy or sell a vehicle, according to reports.

Updates to Medicaid Support for New Moms

In May of last year, Governor Kim Reynolds signed a bill that would go into law in 2025 that would change up the length of time postpartum Medicaid coverage will last.

Instead of just sixty days of coverage, new moms will be covered by Medicaid for twelve months. However, the amount of money a parent has to make to remain eligible is also changing.

This income eligibility threshold is being lowered from 375% to 215% of the federal poverty line, according to reports.

Other additional laws that are set to go into place in 2025 include; restricting local variations in gun rules, new data protection laws, new taxes on metal pipes and bongs, and updates to Iowa's OWI laws.

Read more about these rules here.

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