(The Center Square) – Iowa Gov. Kim Reynolds is asking lawmakers to implement a 3.65% flat income tax rate this year and a 3.5% flat tax in 2025.

Lawmakers passed a bill in 2022 that created a flat tax rate of 3.9% by 2026. Reynolds said in her Condition of the State address Tuesday night that the state’s $1.83 billion surplus from fiscal year 2023 and $900 million in reserves mean the state is taking too much from taxpayers.