Iowa Payroll Tax Calculator 2026
Calculate your exact Iowa take-home pay. State income tax: 3.8% flat. Includes federal taxes and FICA.
| Deduction | Per Paycheck | Annual |
|---|---|---|
| Gross Pay | — | — |
| Federal Income Tax | — | — |
| Iowa State Tax | — | — |
| Social Security (6.2%) | — | — |
| Medicare (1.45%) | — | — |
| Total Deductions | — | — |
| Net Take-Home | — | — |
Iowa Payroll Tax Calculator 2026
Iowa significantly simplified its tax structure in recent years. The state reduced its top rate to 5.7% effective 2026 and eliminated several brackets. Iowa is on a path to a flat 3.9% tax rate by 2026. Iowa does not tax Social Security benefits and excludes the first $6,000 of retirement income.
All Payroll Deductions in Iowa (2026)
- Federal income tax: 10%–37% (2026 IRS brackets; single filer pays 22% bracket above ~$50,000 taxable income)
- Iowa state income tax: 3.8%–5.7% (4 brackets)
- Social Security: 6.2% on wages up to $176,100 (2026 wage base)
- Medicare: 1.45% on all wages (no cap); additional 0.9% on wages over $200,000
- Payroll Taxes Guide
- Overtime Rules
- Tax Withholding Guide
Notable Iowa Tax Features
Iowa also levies a 6% state sales tax plus local option sales taxes up to 1%. Iowa's income tax is relatively complex due to its unique exemption structure and treatment of federal taxes paid as a deduction.
Iowa vs Neighboring States
For a $65,000 earner in Iowa, state income tax is approximately $2,800–$3,200/year depending on deductions. Iowa's income tax burden is moderate compared to upper Midwest neighbors like Minnesota.
About This Calculator
This Iowa payroll tax calculator uses 2026 federal and state rates from IRS Publication 15-T and the Iowa Department of Revenue. Results are estimates based on the annualized withholding method. Actual withholding may differ based on W-4 elections, local income taxes, itemized deductions, tax credits, and pre-tax benefits. Always verify with your payroll provider or a tax professional for official payroll purposes.