Iowa paycheck taxes at a glance
| State income tax | Flat 3.8% |
|---|---|
| Standard deduction | $16,100 single, $32,200 joint, $24,150 head of household |
| Personal credit (off the tax) | $40 single, $80 joint |
| Per dependent | $40 credit |
| Pre-tax deductions | 401(k), HSA and health premiums lower state tax too |
| Local income tax | None on wages |
| State payroll deductions | None |
| Reciprocity | With IL |
| Figures | Tax year 2026 |
Every paycheck also has federal income tax, Social Security (6.2% up to $184,500) and Medicare (1.45%), worked out with the same 2026 IRS figures as ourmain paycheck calculator.
Worked examples
A $60,000 salary in Des Moines, single, paid every two weeks
| Per paycheck | Per year | |
|---|---|---|
| Gross pay | $2,307.69 | $60,000 |
| Federal income tax | − $193.08 | − $5,020 |
| Social Security and Medicare | − $176.54 | − $4,590 |
| Iowa income tax | − $62.62 | − $1,628 |
| Take-home pay | $1,875.45 | $48,762 |
Single, paid every two weeks (26 paychecks). Iowa taxable income is $43,900 and the state tax is $1,628, an effective 2.714% of gross pay. The $16,100 federal standard deduction comes off first, then 3.8% applies to the rest and the $40 personal credit is subtracted from the tax.
A $130,000 household in Cedar Rapids, married filing jointly with two children
| Per paycheck | Per year | |
|---|---|---|
| Gross pay | $5,000.00 | $130,000 |
| 401(k) at 6% | − $300.00 | − $7,800 |
| Federal income tax | − $227.08 | − $5,904 |
| Social Security and Medicare | − $382.50 | − $9,945 |
| Iowa income tax | − $125.38 | − $3,260 |
| Take-home pay | $3,965.04 | $103,091 |
Married filing jointly, 2 children, paid every two weeks (26 paychecks). Iowa taxable income is $90,000 and the state tax is $3,260, an effective 2.508% of gross pay. The 6% 401(k) deferral and the $32,200 joint standard deduction lower Iowa taxable income, and two $40 personal credits plus two $40 dependent credits come off the tax.
From nine brackets to one 3.8% rate
Iowa’s 2022 tax law began collapsing its brackets, and Senate File 2442, signed in May 2024, sped up the schedule so that a single 3.8% rate applied from 2025. For 2026 the Department of Revenue confirms that all taxable income is again taxed at 3.8%. Retirement income was already exempt for people 55 and older, so the flat rate mainly affects wages and business income.
Federal taxable income is the starting point
Since 2023 Iowa’s return begins with federal taxable income, after the federal standard or itemized deduction. Iowa follows federal law on a rolling basis, so the larger 2026 federal standard deduction flows through automatically. The Department of Revenue says Iowa also follows the new federal deductions for tips, overtime and car-loan interest and the extra $6,000 deduction for people 65 and older; this calculator does not model those optional items.
School district surtax
Many Iowa school districts add an income surtax: a percentage of your Iowa income tax, set by each district and capped at 20%. It is paid when you file your return, not withheld from your pay, and the rate depends on the district you live in on December 31. The Department of Revenue publishes the list of district rates each year. This calculator does not include the surtax, so add your district’s percentage of the state tax if it applies to you.
Working in Illinois: reciprocity
Iowa and Illinois have a reciprocal agreement. An Iowa resident who works in Illinois can file Form IL-W-5-NR with the employer so that only Iowa tax is withheld, and the same works in reverse for Illinois residents working in Iowa. Iowa has no such agreement with Nebraska, Minnesota, Missouri, Wisconsin or South Dakota.
Iowa vs. neighboring states
Take-home pay on a $75,000 salary, single, no pre-tax deductions and no local tax:
| State | Income tax | State tax + programs | Take-home |
|---|---|---|---|
| Iowa | Flat 3.8% | $2,198 | $59,394 |
| Minnesota | 5.35% to 9.85% (4 brackets) | $4,007 | $57,586 |
| Wisconsin | 3.5% to 7.65% (4 brackets) | $2,985 | $58,607 |
| Illinois | Flat 4.95% | $3,568 | $58,025 |
| Missouri | 2% to 4.7% (8 brackets, 0% up to $1,348 single) | $2,534 | $59,059 |
| Nebraska | 2.46% to 4.55% (3 brackets) | $2,533 | $59,060 |
| South Dakota | None on wages | $0 | $61,593 |
Where you work and where you live can both matter. See paycheck calculators for every state for the full comparison.