Taxes in Mason City
Mason City's tax picture combines a higher-than-national property tax RATE with a lower-than-national actual BILL, plus Iowa's statewide flat income tax and combined sales tax.
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Learn moreA real, disclosed rate-vs-bill distinction
Cerro Gordo County's effective property tax rate ran approximately 1.36% -- above the national median rate (1.02%) -- yet the median annual bill ($2,106) ran below the national median bill ($2,400), since Mason City's lower home values more than offset the higher rate.
Iowa's flat income tax and full retiree exemption
Iowa's flat 3.8% income tax rate (2026) applies to all taxable income, with retirement income and Social Security fully exempt for qualifying residents 55 or older, per House File 2317 (signed 2022, effective 2023).
A combined 7% sales tax
Mason City's combined sales tax rate runs 7% -- Iowa's 6% state rate plus a 1% Cerro Gordo County local-option tax.
Key takeaways
- Cerro Gordo County's higher property tax RATE (1.36%) still produces a below-national-median actual BILL ($2,106).
- Iowa's flat 3.8% income tax and full retirement/Social Security exemption apply to Mason City residents statewide.
- Mason City's combined sales tax rate is 7% (6% state plus 1% Cerro Gordo County local-option).
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