IA

Iowa Paycheck Calculator

See exactly what you take home after federal taxes, Iowa state income tax, Social Security, and Medicare. Updated for 2026.

State tax: 5.7% SS: 6.2% Medicare: 1.45% 2026 brackets
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1099 freelancer note: You owe both halves of Social Security & Medicare — that's 15.3% self-employment tax on top of income tax. Quarterly estimated payments due Apr 15, Jun 16, Sep 15, Jan 15.
Iowa state income tax (2026) Iowa top rate is 5.7% for 2024, phasing down to 3.9% flat by 2026.
Rates from 4.4% to 5.7% (over $75K single)

Iowa Income Tax Explained (2026)

Iowa has a state income tax with a flat 3.8% (transitioning) structure. Workers earning typical wages generally pay an effective state rate between 2.9% and 5.7% depending on income and deductions. Understanding how Iowa's tax works helps you accurately predict your take-home pay and plan your withholding.

Iowa residents also pay federal income tax (10%–37%), Social Security (6.2% up to $184,500), and Medicare (1.45%). The combination of federal and state taxes is the primary driver of the gap between your gross pay and your actual paycheck.

How Iowa compares to neighboring states

Minnesota
Up to 9.85%
Much higher
Wisconsin
Up to 7.65%
Higher
Illinois
4.95% flat
Similar
Missouri
4.8% top rate
Similar

What taxes come out of a Iowa paycheck?

A Iowa W-2 employee's paycheck is reduced by federal income tax (progressive 10%–37%), Iowa state income tax (flat 3.8% (transitioning)), Social Security at 6.2% on wages up to $184,500, and Medicare at 1.45% on all wages. High earners above $200,000 also pay an additional 0.9% Medicare surtax on excess wages.

Iowa freelancers and 1099 contractors pay self-employment tax of 15.3% — covering both employee and employer portions of Social Security and Medicare — on top of both federal and state income taxes. Half of the self-employment tax is deductible from federal adjusted gross income, reducing the effective burden slightly. Iowa freelancers must also make quarterly estimated state tax payments.

Iowa tax tips for 2026

  • Major rate cuts underway: Iowa is aggressively cutting its income tax rate. By 2026, Iowa has moved toward a flat rate of approximately 3.8%, down from rates as high as 8.53% in 2022.
  • Federal deductibility eliminated: Iowa previously allowed deduction of federal income taxes paid, but eliminated this as part of its tax reform. Iowa now uses a standard deduction aligned more closely with federal.
  • Retirement exemption: Iowa fully exempts Social Security benefits and retirement income from state income tax for taxpayers age 55 and older.
  • Estimated taxes: Iowa requires estimated payments if you expect to owe more than $1,000 state tax. Use Iowa Form IA 1040ES.

Frequently asked questions

Iowa has undergone significant tax reform. By 2026, Iowa is expected to have a flat income tax rate of approximately 3.8%–4.0% — dramatically lower than the multi-bracket system that topped out at 8.53% in 2022. Iowa's goal is to reach a flat rate of 3.9% by 2026 and eventually reduce it further. Check Iowa's current-year rate as the transition continues.
For a single filer earning $75,000 in Iowa in 2026, at the approximately 3.9% flat rate, state tax is approximately $2,380–$2,500 (after deductions). Combined with federal tax (~$10,294), Social Security ($4,650), and Medicare ($1,088), total deductions are roughly $18,432. Take-home is approximately $56,568/year or ~$2,176 bi-weekly.
Iowa fully exempts Social Security benefits from state income tax. Additionally, for taxpayers age 55 and older, Iowa exempts all retirement income including pension distributions, IRA withdrawals, and 401(k) distributions. This exemption makes Iowa one of the most favorable states for retirees — particularly once the rate cuts are fully implemented.
Iowa's sweeping tax reform, phased in from 2023–2026, has significantly reduced withholding for Iowa workers. A worker earning $75,000 who paid $4,500+ in Iowa income tax in 2022 may pay less than $2,500 under the 2026 flat rate. If your employer has not updated withholding to reflect the new rate, you may be over-withholding and receive a larger refund.
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