Iowa Take-Home Pay Calculator
3.8% flat rateEstimate your net paycheck after federal taxes, FICA, and Iowa state income tax.
Last updated: April 2026
Iowa Income Tax
Iowa moved to a flat 3.8% income tax rate in 2026 as part of its multi-year tax reform plan.
Iowa State Income Tax: What You Need to Know
Iowa moved to a flat 3.8% income tax rate in 2026 as part of its multi-year tax reform plan.
Iowa completed a multi-year income tax overhaul, moving from a graduated system that once topped at 6% to a flat 3.8% rate for 2026. Iowa's standard deduction conforms to the federal amount, so single filers deduct $15,000 before applying the state rate. Iowa has no local income taxes — Des Moines, Cedar Rapids, and all other Iowa cities add no local wage withholding. Iowa fully exempts Social Security benefits and most retirement income for residents 55 and older from state income tax.
On top of state taxes, all workers also pay federal income tax based on the 2026 progressive brackets, plus FICA taxes: Social Security (6.2% up to $176,100) and Medicare (1.45% on all wages).
Our calculator applies Iowa's 3.8% flat rate to your gross income as a simplified estimate. Actual state taxes may vary based on deductions, exemptions, and local taxes not captured in this estimate.
Iowa Take-Home Pay Examples (2026, Single Filer)
Estimates based on standard deduction, no pre-tax deductions. Last updated: April 2026.
| Salary | Federal Tax | State Tax | FICA | Take-Home |
|---|---|---|---|---|
| $40,000 | $3,167 | $1,520 | $3,060 | $32,253 |
| $60,000 | $6,617 | $2,280 | $4,590 | $46,513 |
| $80,000 | $10,817 | $3,040 | $6,120 | $60,023 |
| $100,000 | $15,617 | $3,800 | $7,650 | $72,933 |
Frequently Asked Questions: Iowa Taxes
What is Iowa's income tax rate for 2026?
Iowa's individual income tax rate for 2026 is a flat 3.8%. Iowa transitioned from a graduated system — which previously topped at 6% — to a flat rate through legislation enacted in 2022. The rate is set to continue declining in subsequent years if state revenue conditions are met.
When did Iowa switch from graduated brackets to a flat tax?
Iowa's move to a flat rate was phased in over several years after SF 2342 passed in 2022. The graduated system — which had as many as nine brackets historically — was replaced with progressively lower flat rates each year. By 2026, Iowa reached 3.8%, making it one of the lower flat-rate income tax states in the Midwest.
Does Iowa tax Social Security benefits?
No. Iowa fully exempts Social Security benefits from state income tax. Iowa also exempts most retirement income — including pension and IRA distributions — for taxpayers age 55 and older. This makes Iowa one of the more retirement-friendly tax states in the Midwest despite having an income tax.
Does Iowa have a local income tax?
No. Iowa cities and counties do not impose a local income tax on wages. Des Moines, Cedar Rapids, Davenport, and all other Iowa localities add no local withholding. Iowa residents pay only state income tax at the sub-federal level — straightforward withholding with no local layer.
How does Iowa's 3.8% flat rate compare to neighboring states?
Iowa's 3.8% flat rate is lower than Illinois (4.95% flat), Wisconsin (graduated, top 7.65%), and Minnesota (graduated, top 9.85%). It is slightly higher than Indiana's 3.15% state rate (though Indiana adds county taxes). Iowa has become noticeably more competitive in the Midwest after its reforms.
What is Iowa's minimum wage in 2026?
Iowa's minimum wage is $7.25/hour — the federal floor. Iowa has not raised its state minimum wage above the federal minimum. Iowa also preempts cities and counties from setting higher local minimums, so no Iowa locality can require more than $7.25/hour.