Iowa paycheck taxes at a glance
| Income tax on wages | Flat 3.8% |
|---|---|
| Standard deduction | $16,100 single · $32,200 married filing jointly |
| Personal exemption credit | $40 single · $80 joint · $40 per dependent |
| Minimum wage (2026) | $7.25 an hour (tipped employees at least $4.35 an hour plus tips) |
Local taxes: Many Iowa school districts add an income surtax (a percentage of state tax), paid with the state return.
Example: a $76,500 salary in Iowa
The median household income in Iowa is about $76,483 (2025 data). Here's what one earner with that salary, paid every two weeks, filing single with no pre-tax deductions, would see on each paycheck in 2026:
| Gross pay | $2,942.31 |
|---|---|
| Federal income tax | −$307.69 |
| Social Security | −$182.42 |
| Medicare | −$42.66 |
| Iowa income tax | −$86.74 |
| Take-home pay | $2,322.79 |
That's $60,393 a year in take-home pay, or 21.1% of gross pay going to taxes.
Take-home pay by salary in Iowa
Single filer, paid biweekly, standard W-4, no pre-tax deductions:
| Salary | Per paycheck | Per year | State taxes | Total tax rate |
|---|---|---|---|---|
| $40,000 | $1,286.61 | $33,452 | $868 | 16.4% |
| $60,000 | $1,875.45 | $48,762 | $1,628 | 18.7% |
| $80,000 | $2,412.38 | $62,722 | $2,388 | 21.6% |
| $100,000 | $2,924.30 | $76,032 | $3,148 | 24% |
| $150,000 | $4,182.42 | $108,743 | $5,048 | 27.5% |
| $200,000 | $5,460.72 | $141,979 | $6,948 | 29% |
What changed for 2026
- Iowa's flat 3.8% rate, which replaced graduated brackets for 2025, applies to all taxable income again in 2026.
- The Iowa Department of Revenue issued new 2026 withholding tables and a revised IA W-4 to reflect federal changes under the One Big Beautiful Bill Act.
Iowa pay rules worth knowing
- Employers must pay at least monthly, semimonthly or biweekly on regular paydays, and each payday can be no more than 12 days (not counting Sundays and legal holidays) after the end of the pay period it covers.
- Whether you quit or are fired, your final wages are due by the next regular payday.
A flat tax built on the federal return
Iowa used to have several brackets. Since 2025, it taxes all income at one rate, 3.8% for 2026. The starting point follows your federal return, and Iowa uses the federal standard deduction, $16,100 for single filers in 2026. Households with very low income owe no Iowa tax at all.
With one rate, the math is simple. Each extra dollar of wages costs 3.8 cents in Iowa tax, and a traditional 401(k) contribution saves the same 3.8 cents per dollar. Your Iowa tax as a share of gross pay rises gradually with income because the standard deduction takes a fixed amount off the top.
The school district surtax
Many Iowa school districts add an income surtax. It isn’t a percentage of income. It’s a percentage of your Iowa income tax: your state tax is multiplied by the district’s surtax rate. So with a 5% surtax rate, a household with $2,000 of Iowa tax owes another $100. A few things to know:
- It depends on where you live on December 31. The district you lived in at the end of the year sets your rate, not where you work.
- It applies whether or not you have children. Every resident of a taxing district owes it.
- It’s paid with your Iowa return. Your employer doesn’t withhold it separately, so check that your state withholding is high enough to cover it.
Six counties, Appanoose, Cass, Pocahontas, Sac, Shelby and Winnebago, add a similar emergency medical services (EMS) surtax.
The calculator doesn’t include either surtax. To estimate yours, multiply the Iowa tax from the calculator by your district’s rate.
Working across the state line
Iowa has a reciprocal agreement only with Illinois. If you live in Iowa and work in Illinois, Illinois doesn’t tax your wages; Iowa does, and your employer can withhold Iowa tax instead. The same works in reverse for Illinois residents working in Iowa. Iowa has no such agreement with its other neighbors.
The income tax calculator estimates your full-year federal tax, and the 401(k) calculator shows how pre-tax contributions grow.
Estimates only. Your employer’s payroll system, your W-4 and your IA W-4 determine your actual paycheck.
Sources
- Iowa Code 91D.1: Minimum wage
- Iowa Code 91A.3: Payment of wages
- Iowa Code 91A.4: Final payment of wages
- Iowa Department of Revenue: 2026 individual income tax and interest rates
- Iowa Department of Revenue: New withholding tax tables for 2026
- Iowa Department of Revenue: School district surtax and EMS surtax
- Iowa Department of Revenue: Iowa–Illinois reciprocal agreement
- Iowa Department of Revenue: Retirement income guidance
- Census Bureau: Household Income in States and Metropolitan Areas, 2025
- revenue.iowa.gov
- revenue.iowa.gov
- IRS Publication 15-T (federal withholding)
Frequently asked questions
What is Iowa's income tax rate in 2026?
A flat 3.8% on all taxable income. The Iowa Department of Revenue confirmed that, for 2026, all levels of taxable individual income are subject to that rate.
What is the Iowa school district surtax?
It's an extra tax set by many Iowa school districts, figured as a percentage of your Iowa income tax and paid with your state return. It depends on the district you lived in on December 31, and you owe it whether or not you have children in school.
I live in Illinois and work in Iowa. Do I pay Iowa income tax?
No. Iowa's only income tax reciprocal agreement is with Illinois. Illinois residents pay Illinois tax on wages earned in Iowa, and Iowa residents working in Illinois pay Iowa tax.
Is retirement income taxed in Iowa?
Generally not for people 55 or older, disabled people and surviving spouses. Iowa excludes their retirement income from tax. Wages are still taxed at 3.8%.
What is the minimum wage for tipped workers in Iowa?
Iowa limits the tip credit to 40% of the minimum wage, so tipped employees must be paid at least $4.35 an hour in cash wages, with tips making up the rest of the $7.25.
Facts verified November 6, 2026. Estimates only; your employer's payroll system and your W-4 determine your actual withholding.