Calculate your take-home pay in The Hawkeye State. Iowa income tax rate: 3.8%.
Iowa transitioned to a flat 3.8% income tax in 2025, replacing its previous progressive system. The state now conforms to federal standard deduction amounts. This significant tax simplification makes Iowa much more competitive with neighboring states.
| Item | Per Paycheck | Monthly | Annual |
|---|---|---|---|
| Gross Pay | - | - | - |
| Federal Income Tax | - | - | - |
| Iowa State Tax | $0 | $0 | $0 |
| Social Security | - | - | - |
| Medicare | - | - | - |
| 401(k) + Pre-Tax | - | - | - |
| Take-Home Pay | - | - | - |
Iowa has a flat income tax rate of 3.8%. This calculator estimates your take-home pay after federal income tax, state income tax, Social Security, Medicare, and any pre-tax deductions like 401(k) contributions. Enter your salary or hourly wage above to see a detailed breakdown of your paycheck.
Iowa moved to a flat 3.8% rate in 2026, down from a progressive system that once reached 8.53%. This dramatic reduction is part of multi-year tax reform. Iowa fully exempts retirement income (Social Security, pensions, 401(k), IRA) from state tax for residents 55 and older. The state does not have local income taxes.
Regardless of state taxes, all Iowa workers pay federal income tax using the 2026 brackets: 10% on the first $11,925 of taxable income (single), 12% up to $48,475, 22% up to $103,350, 24% up to $197,300, 32% up to $250,525, 35% up to $626,350, and 37% on income above that. The standard deduction is $15,000 for single filers and $30,000 for married filing jointly in 2026.
All workers in Iowa pay Social Security tax at 6.2% on wages up to $176,100 (2026) and Medicare tax at 1.45% on all wages. An additional 0.9% Medicare surtax applies to wages over $200,000 for single filers. These federal payroll taxes apply uniformly regardless of which state you live in.
Pre-tax deductions reduce your taxable income for both federal and state purposes. Contributing to a 401(k) (up to $24,500 in 2026, plus $8,000 catch-up if 50+) lowers both your federal and IA state tax bill. Health Savings Account (HSA) contributions ($4,300 individual, $8,550 family in 2026) are also pre-tax. Review your W-4 withholding: if you receive a large refund each year, you may be overwithholding, which means less money in each paycheck. The Tax Bracket Calculator shows your federal marginal and effective rates.
Iowa moved to a flat 3.8% income tax in 2025, replacing a complex progressive system that previously topped out at 6%. This simplification makes Iowa significantly more competitive with neighboring no-tax South Dakota. Des Moines has a growing financial services and insurance sector, and the state's cost of living runs about 10% below average.
Iowa's flat tax simplification in 2025 was a major change. Under the old progressive system, a $75,000 earner would have paid roughly $3,800 in state tax. Under the new 3.8% flat rate, that drops to about $2,280. Use this calculator with the 2026 numbers to see your current take-home pay.