Iowa income tax brackets for 2026
Iowa taxes wages at a flat 3.8%. The rates apply to taxable income: your wages after pre-tax deductions and the deductions and exemptions shown below.
| All filing statuses: taxable income | Rate |
|---|---|
| Over $0 | 3.8% |
Deductions, exemptions and credits
| Standard deduction | $16,100 single · $32,200 married · $24,150 head of household |
|---|---|
| Personal credit | $40 single · $80 married |
| Dependent credit | $40 each |
- Iowa moved to a flat 3.8% rate in 2025, down from a top rate of 5.7% in 2024 and 8.53% a few years earlier.
- Iowa starts from federal taxable income, so the federal standard deduction applies, and each person gets a $40 credit.
No Iowa payroll deductions
Iowa does not take disability, paid leave or unemployment contributions from employees. State unemployment insurance is paid by employers, so the only deductions from a Iowa paycheck are federal taxes, Iowa income tax and anything you choose, such as 401(k) contributions or health insurance.
Local income taxes in Iowa
Most Iowa school districts add a surtax worked out as a percentage of your state income tax (up to 20%), and some counties add an emergency medical services surtax. They are paid with your state return rather than as a separate wage tax.
Local taxes are not added automatically because they depend on your address and where you work. Enter your rate in the Local income tax field to include it.
Example: $60,000 salary in Iowa
A single filer earning $60,000 a year, paid every two weeks, with a standard 2026 W-4 and no 401(k) or health deductions:
| Every two weeks | Per paycheck | Per year |
|---|---|---|
| Gross pay | $2,307.69 | $60,000.00 |
| Federal income tax | -$193.08 | -$5,020.00 |
| Social Security (6.2%) | -$143.08 | -$3,720.00 |
| Medicare (1.45%) | -$33.46 | -$870.00 |
| Iowa income tax | -$62.62 | -$1,628.20 |
| Take-home pay | $1,875.45 | $48,761.80 |
Iowa income tax is about $1,628.20 a year here, 2.71% of gross pay. All taxes together take 18.7% of pay. Federal withholding is the 2026 single schedule: $60,000 less the $8,600 allowance gives $51,400, taxed at $1,240 plus 12% above $19,900, or $5,020 a year.
Take-home pay in Iowa at different salaries
Yearly take-home pay for a single filer in Iowa, paid every two weeks, with no pre-tax deductions or local tax. For a married couple filing jointly on $120,000, take-home pay is about $97,524 a year (18.7% in taxes).
| Salary | Iowa tax | Take-home per year | Per paycheck |
|---|---|---|---|
| $30,000 | $488 | $25,797 | $992.18 |
| $45,000 | $1,058 | $37,279 | $1,433.82 |
| $60,000 | $1,628 | $48,762 | $1,875.45 |
| $80,000 | $2,388 | $62,722 | $2,412.38 |
| $100,000 | $3,148 | $76,032 | $2,924.30 |
| $150,000 | $5,048 | $108,743 | $4,182.42 |
| $250,000 | $8,848 | $174,334 | $6,705.15 |
How the Iowa paycheck estimate works
Federal income tax follows IRS Publication 15-T for 2026: your paycheck is annualized, an allowance for the standard deduction is taken off, the 2026 withholding schedule for your filing status is applied, and W-4 credits and extra withholding are added back per paycheck. Social Security is 6.2% of wages up to $184,500 and Medicare 1.45%, plus 0.9% on wages over $200,000.
Iowa tax is estimated for the whole year: wages after pre-tax deductions, less the standard deduction, run through the brackets above, minus credits, then divided by the number of paychecks.
Iowa tax = Brackets(Wages − pre-tax deductions − standard deduction) − credits