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Tax Year 2026Updated July 23, 2026

Iowa Paycheck Calculator 2026

Iowa uses a flat income tax rate of 3.80% on all taxable income. Unlike states with graduated brackets, every dollar you earn above the exemption threshold is taxed at the same rate. Combined with federal income tax and FICA deductions, use the calculator below to see your actual take-home pay per pay period.

Iowa's Flat Income Tax

Iowa levies a flat 3.80% income tax on all taxable income. There are no progressive brackets - whether you earn $30,000 or $300,000, the state rate is the same. This simplifies withholding calculations compared to graduated-bracket states.

Retirees benefit from full exemption of pension income.

How Your Iowa Paycheck Is Calculated

  1. Gross pay: Your annual salary divided by the number of pay periods.
  2. Federal income tax: 2026 progressive brackets (10%-37%) after the federal standard deduction of $16,100 (single) or $32,200 (MFJ).
  3. Social Security: 6.2% on wages up to $184,500.
  4. Medicare: 1.45% on all wages, plus 0.9% above $200,000 (single).
  5. Iowa state income tax: Flat 3.80% on taxable income.

Retirement Income in Iowa

Iowa fully exempts pension and retirement income from state income tax. Social Security benefits are also not taxed. This makes Iowa favorable for retirees from an income tax perspective.

Worked Examples

Example 1: $78,000/year - Head of Household, Weekly

Profile: $78,000 annual salary, Head of Household filer, paid weekly (52 paychecks/year)

Gross per period: $1,500.00
Federal income tax: -$117.46
Social Security: -$93.00
Medicare: -$21.75
Iowa state income tax: -$57.00
Net take-home pay: $1,210.79 per paycheck ($62,961/year)
Effective total tax rate: 19.28%

Example 2: $175,000/year - Married Filing Jointly, Biweekly

Profile: $175,000 annual salary, Married Filing Jointly filer, paid biweekly (26 paychecks/year)

Gross per period: $6,730.77
Federal income tax: -$801.54
Social Security: -$417.31
Medicare: -$97.60
Iowa state income tax: -$255.77
Net take-home pay: $5,158.55 per paycheck ($134,122/year)
Effective total tax rate: 23.36%

Example 3: $72,000/year - Single, Semi-monthly

Profile: $72,000 annual salary, Single filer, paid semimonthly (24 paychecks/year)

Gross per period: $3,000.00
Federal income tax: -$292.08
Social Security: -$186.00
Medicare: -$43.50
Iowa state income tax: -$114.00
Net take-home pay: $2,364.42 per paycheck ($56,746/year)
Effective total tax rate: 21.19%

Iowa Tax Notes

  • Flat tax rate: 3.80% on all taxable income.
  • Supplemental withholding rate: 3.80% for bonuses and supplemental wages.

Iowa allows local option sales taxes of up to 1%. Iowa does not impose local income taxes. School districts may levy additional income surtaxes — these are administered through withholding but are not standard state income tax.

OBBBA Conformity

Iowa conforms to the federal OBBBA deductions for tips and overtime. These deductions reduce both your federal and Iowa state taxable income.

Frequently Asked Questions

What taxes are deducted from my Iowa paycheck?
Your Iowa paycheck has deductions for federal income tax (10%-37% progressive brackets), FICA (Social Security + Medicare), and Iowa state income tax at a flat rate of 3.80%.
How accurate is this paycheck calculator?
This calculator estimates take-home pay using 2026 federal and Iowa state tax rates. It models federal income tax, FICA, and state income tax. It does not include pre-tax deductions (401(k), HSA, health insurance premiums), post-tax deductions, or state-specific payroll taxes (disability insurance, paid leave). Your actual paycheck may differ.
How does Iowa's flat income tax work?
Iowa uses a flat tax rate of 3.80% that applies to all taxable income regardless of how much you earn. Unlike graduated-bracket states where higher income is taxed at higher rates, every dollar of taxable income in Iowa is taxed at the same rate.
Is Iowa's flat tax rate applied to all my income?
The flat rate applies to your taxable income, which is your gross income minus any applicable deductions or exemptions. The flat rate does not apply to income below these thresholds.
Is my pension or retirement income taxed in Iowa?
No. Iowa fully exempts pension and retirement income from state income tax. Social Security benefits are also not taxed. This makes Iowa a favorable state for retirees from an income tax perspective.
How are bonuses and supplemental wages taxed in Iowa?
Iowa withholds state tax on bonuses, commissions, and other supplemental wages at a flat rate of 3.80%. This may differ from your regular withholding rate. At the federal level, supplemental wages are typically withheld at a flat 22% (or 37% above $1 million).
Does Iowa conform to the OBBBA overtime and tips deductions?
Yes. Iowa conforms to the federal OBBBA deductions for tips and overtime. These deductions reduce both your federal and Iowa state taxable income, giving you a double benefit.