IOWA - As the calendar flips to January 1, 2026, several significant legislative changes are set to take effect across Iowa. From road safety and family law to tax reform, here are five new laws and updates hitting the Hawkeye State this January.
1. Hands-Free Driving Fines Begin (SF 22)
Since July 1, 2025, Iowa has had a "hands-free" driving law on the books, but law enforcement was limited to issuing warnings to educate the public. That "grace period" officially ends on January 1, 2026.
- The Change: Drivers can no longer hold an electronic device in their hand while operating a vehicle. All activity must be "one-touch" or voice-activated.
- The Cost: Starting January 1st, violations will result in a $100 fine (which can reach roughly $170 after court costs and surcharges). It is also now classified as a moving violation, which can affect your insurance rates and driving record.
2. Overhaul of Child Support Guidelines
Every four years, Iowa conducts a "quadrennial review" of its child support rules. The latest revisions, approved by the Iowa Supreme Court, take full effect on January 1, 2026.
- Key Revisions: The new rules eliminate the standard childcare expense deduction and replace it with a "childcare expense add-on" model.
- Medical Support: The Child Support Schedule of Basic Support Obligations and the Medical Support Table have both been updated to reflect modern economic data, potentially shifting the support amounts for thousands of active cases.
3. The Ban on Ranked Choice Voting (HF 954)
While parts of House File 954 regarding voter citizenship verification were implemented earlier, the specific provision banning ranked choice voting officially takes effect on January 1, 2026.
- The Law: Iowa law now strictly prohibits the use of ranked choice voting in any federal, state, or local election.
- Impact: This ensures that all future ballots in the state remain "one person, one vote" for a single candidate, preventing municipalities from experimenting with alternative formats used in other states.
4. New Income Tax Withholding Tables
The Iowa Department of Revenue is rolling out updated income tax withholding formulas and tables for the 2026 tax year.
- Fiscal Reform: These changes are part of Iowa’s ongoing transition toward a flat-rate tax system. The new 2026 tables accommodate reductions in individual income tax liability required under state law.
- Check Your Paycheck: Employers must switch to the 2026 IA W-4 forms. Most workers will see a slight change in their "take-home" pay as withholding amounts are adjusted to match the lower 2026 tax rates.
5. Expanded Autism Insurance Coverage (HF 363)
A significant win for families, House File 363 mandates updated insurance coverage requirements for the treatment of Autism Spectrum Disorder (ASD).
- Applicability: While the law was signed earlier, its mandatory applicability date for most insurance policies in the state is January 1, 2026.
- Treatment Access: The law ensures that covered individuals have access to essential therapies and diagnostic services without facing certain previously allowed coverage caps or exclusions by insurers.
Additional New Year Updates
Beyond these laws, Iowa is also adjusting its unemployment insurance tax base for employers. Under Senate File 607, the taxable wage base is being cut in half, providing significant tax relief to Iowa business owners starting in the first quarter of 2026.