Iowa Salary & Paycheck Calculator 2026
Iowa converted from a 9-bracket progressive system (top rate 8.53% in 2022) to a flat 3.8% effective tax year 2025 — one of the most aggressive US tax restructurings in the past 5 years (HF 2317, 2022). The state conforms to the federal standard deduction in 2026, eliminated the federal-tax deduction (which had been allowed against Iowa taxable income), and fully eliminated the inheritance tax effective 2025. No local income tax. Des Moines, Cedar Rapids, Davenport, Iowa City, Sioux City all run pure state + federal + FICA paychecks.
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Annual Take-Home
$58,668
≈ $4,889/mo · $2,256/biweekly · effective rate 16.78%
🏖️ Plan ahead with this take-home
Tax Breakdown
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Salary Calculator
Annual gross to take-home: federal + state + FICA + 401(k)/HSA modeling for all 50 states.
Calculate take-homeNo Tax on Tips Calculator
Apply the 2025 OBBBA tip deduction (up to $25,000) for servers, drivers, stylists, and other tipped workers.
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Apply the 2025 OBBBA 'No Tax on Overtime' deduction (up to $12,500) and see real savings.
Calculate OT take-home1099 Tax Calculator
1099, sole prop, or LLC: self-employment tax (15.3%) plus quarterly estimates.
Calculate SE taxIowa State Tax Facts (2026)
Tax Structure
Flat 3.8% (effective tax year 2025)
Top Rate
3.8%
Standard Deduction
Conforms to federal ($16,100 single / $32,200 MFJ)
Other State Payroll
None at state level
Notable Iowa payroll feature
Iowa converted from a 9-bracket progressive system (top rate 8.53% in 2022) to a flat 3.8% by 2025 — among the most aggressive US tax restructurings in the past 5 years (HF 2317, 2022). The state also fully eliminated its inheritance tax effective 2025. Federal income tax was previously deductible against Iowa taxable income; that deduction was eliminated as part of the 2022 reform.
How a Iowa paycheck actually works
Withholding on an Iowa paycheck flows through Form IA W-4, the state withholding exemption certificate. Iowa's tax structure underwent comprehensive reform in 2022 (HF 2317) — the state moved from 9 progressive brackets (top rate 8.53%) to 4 brackets in 2023, then 3 brackets in 2024, and now flat 3.8% effective 2025. The standard deduction was raised to conform with federal. The federal income tax deduction (which had let Iowans subtract federal tax paid from Iowa taxable income — similar to Alabama and Louisiana's prior structures) was eliminated as part of the simplification. No local income tax in Des Moines, Cedar Rapids, or anywhere else in Iowa.
Take-home math at three tiers, Iowa single filer 2026: $60,000 → about $4,400 federal + $4,590 FICA + $1,668 IA state (after federal-conforming standard deduction) = $10,658 deductions, take-home $49,342 (82%). $100,000 → $11,800 federal + $7,650 FICA + $3,188 IA = $22,638, take-home $77,362 (77%). $150,000 → $24,000 federal + $9,275 FICA + $5,088 IA = $38,363, take-home $111,637 (74%). Iowa's flat 3.8% rate plus federal-conforming standard deduction puts Iowa among the more take-home-friendly mid-rate flat-tax states — competitive with Indiana (3.05%), better than Missouri (4.7%), better than Kentucky (4.0% with local Occupational License Fees stacking on top in major metros).
Iowa's tax-side advantages stack neatly. Flat 3.8% rate (down from 8.53% top in 2022 — a 4.7-percentage-point reduction over 3 years), federal-conforming standard deduction, no local income tax, inheritance tax fully eliminated effective 2025, no estate tax, and partial Social Security exemption. Iowa fully exempts retirement income (401(k), IRA, pensions) for retirees age 55+ — among the most generous retirement-income exemptions in the US. Property tax averages 1.50% effective — moderate to high for a Midwest state, though below Illinois and Wisconsin. Sales tax stacks 6% state + up to 1% local for a 7% combined ceiling — among the lower in the country.
The single highest-leverage tactic for Iowa W-2 earners is maxing pre-tax 401(k) and HSA, since Iowa conforms to federal pre-tax treatment. A $24,500 401(k) deferral saves about $931 in Iowa state tax. The bigger long-term lever for Iowans is the retirement-income exemption — qualifying retirement distributions become fully Iowa-tax-exempt at age 55, well before the federal 59½ early-withdrawal threshold. Pre-retirement workers should plan traditional vs Roth 401(k) elections accordingly: traditional contributions during work years capture the 3.8% deduction now, then withdraw Iowa-tax-free at 55+. Iowa's College Savings Iowa 529 plan offers a state deduction up to $5,500 per beneficiary annually.
Iowa tax quirks worth knowing
- •Iowa converted from 9-bracket progressive (8.53% top) to flat 3.8% via HF 2317 (2022) — one of the most aggressive US tax restructurings in the past 5 years.
- •Federal income tax deduction (which Alabama still allows) was eliminated as part of the 2022 reform — Iowa taxable income now closely tracks federal AGI.
- •Inheritance tax fully eliminated effective 2025 (had been a staggered phase-out since 2021).
- •Fully exempts retirement income (401(k), IRA, pensions) for retirees age 55+ — among the most generous US retirement-income exemptions.
Sources: federal brackets + standard deduction from IRS Rev. Proc. 2025-32; retirement contribution limits ($24,500 401(k), $4,400 HSA, $7,500 IRA) from IRS Notice 2025-67; FICA limits from the SSA 2026 Fact Sheet;Iowa state brackets verified against the Tax Foundation 2026 State Income Tax Rates compilation and the official IA 1040 Individual Income Tax Forms (IA Department of Revenue). Recent Iowa reforms referenced: IA HF 2317 (2022) — multi-year conversion from progressive (8.53% top in 2022) to flat 3.8% by 2025. Always cross-check with your state DOR before relying on any number for filing.
Federal payroll tax reference
Above-the-state-line, every Iowa paycheck owes federal income tax + FICA (Social Security + Medicare). The breakdowns: