Iowa tax summary for 2026
| Tax on wages | Flat rate |
|---|---|
| Starting point | Federal taxable income |
| Rates (single) | 3.8% |
| Standard deduction | None |
| Personal exemption | None |
| Federal income tax deduction | Not allowed |
| Employee payroll taxes | None |
| Local income taxes | None |
Iowa income tax brackets 2026
Rates apply to Iowa taxable income, after the deductions above. Married filing separately uses the single brackets unless the state publishes its own.
| Taxable income over | Up to | Rate |
|---|---|---|
| $0 | and up | 3.8% |
Worked example: $65,000, single, paid biweekly
Computed by the same engine as the calculator, with no pre-tax deductions.
| Line | Per paycheck | Annual |
|---|---|---|
| Gross pay | $2,500.00 | $65,000 |
| Federal income tax | $216.15 | $5,620 |
| Social Security | $155.00 | $4,030 |
| Medicare | $36.25 | $943 |
| Iowa income tax | $71.47 | $1,858 |
| Take-home pay | $2,021.13 | $52,549 |
Effective tax rate 19.2%; tax on the next dollar earned 23.5%. Iowa taxable income is $48,900.
Second example: $120,000, married filing jointly, two children
Take-home $101,844 a year ($3,917.06 biweekly). Federal income tax $5,640 after a $4,400 Child Tax Credit, Social Security and Medicare $9,180, Iowa income tax $3,336.
How the Iowa estimate is calculated
- Start from federal taxable income — so the federal standard deduction and any 2025–2028 federal deductions carry through.
- Iowa has no standard deduction in our data.
- Apply the flat rate (married filing separately uses the single brackets).
- Divide the annual total by your number of paychecks.
What this Iowa calculator does not model
- Low-income exemption (no tax if Iowa taxable income + deductions ≤ $9,000 single / $13,500 other statuses; higher for 65+) and the 4.40% alternate tax computation (2026)
- Iowa modifications to federal taxable income (retirement income exclusion for 55+, Social Security, federal interest, etc.)
- Iowa credits (EITC, child and dependent care, tuition)
- School district income surtax (see local data)
Data notes
- Flat 3.8% for 2026 (Iowa Code § 422.5; SF 2442, 2024).
- FIXED: since tax year 2023 Iowa's starting point is federal TAXABLE income (Iowa Code § 422.7: net income = taxable income under IRC § 63), so the federal standard/itemized deduction and, through rolling conformity, the federal tips/overtime/senior deductions flow through. The previous file started from federal AGI and copied the federal standard deduction, which ignored those deductions.
- There is no separate Iowa standard deduction or personal exemption.
Sources
- State income tax: Iowa DOR – IDR announces 2026 individual income tax rate (3.8%) (read 2026-10-07)
- State income tax: Iowa Code § 422.5 (2026) – flat 3.8% rate (read 2026-10-07)
- State income tax: Iowa Legislative Services Agency – Fiscal Topic: Iowa Income Tax (Iowa uses federal taxable income as its starting point, Iowa Code § 422.7) (read 2026-10-07)
- State income tax: Iowa DOR – IA 1040 expanded instructions, Line 4 Iowa taxable income (low-income exemption thresholds) (read 2026-10-07)
- Local income tax: Iowa Tax/Fee Descriptions and Rates – Iowa Department of Revenue (read 2026-10-07)
Federal figures come from the IRS and SSA; see the methodology page.
Compare nearby and similar states
Neighboring states: Illinois, Minnesota, Missouri, Nebraska, South Dakota, Wisconsin
States with a similar tax setup: Indiana, Pennsylvania, North Carolina, Louisiana, Colorado, Kentucky
See every state side by side in the salary comparison by state, or browse all state paycheck calculators.