Iowa Paycheck Calculator 2026
Iowa now taxes income at a flat 3.8% and uses the federal standard deduction, so Iowa withholding is close to 3.8% of pay above about $16,100 a year. Some school districts add a surtax that is settled on the return, not through payroll.
Last updated: October 2026
Pay and filing
Annual gross: $65,000
Used to stop Social Security at the $184,500 wage base and to start the extra 0.9% Medicare above $200,000 on this paycheck.
Form W-4
Step 3: $2,200 per child and $500 per other dependent, a year.
For example education or child care credits you expect to claim.
Interest, dividends or other income with no withholding.
Deductions beyond the standard deduction, including deductible IRA contributions.
Retirement and benefits
$3,900 a year, capped at the $24,500 employee limit for 2026.
Traditional contributions lower federal and most state income tax now, but not Social Security or Medicare.
Through payroll, an HSA avoids income tax and FICA. California and New Jersey still tax it.
2026 limit $3,400.
2026 limit $7,500 per household ($3,750 married filing separately).
Paycheck breakdown (biweekly)
Annual summary
Iowa paycheck rules for 2026
| State income tax, 2026 | Flat 3.8% |
|---|---|
| Deductions before tax | federal standard deduction ($16,100 single, $32,200 joint); personal credit $40 per person |
| Withholding certificate | Form IA W-4 |
| Bonus (supplemental) withholding | Iowa withholds supplemental wages at the flat 3.8% rate. |
| Mandatory payroll premiums | None for employees |
| Local income taxes | Most Iowa school districts levy a surtax calculated as a percentage of your state income tax, commonly 0% to 20%. |
| Reciprocity agreements | Yes, with Illinois |
| Sales tax (for context) | 6.00% state, 6.94% average combined with local (rank 29 of 51) |
Worked example: $60,000 in Iowa
Single filer, paid every two weeks (26 paychecks), standard W-4, no 401(k) or other benefits.
| Gross pay | $2,307.69 |
| Federal income tax | -$193.08 |
| Social Security (6.2%) | -$143.08 |
| Medicare (1.45%) | -$33.46 |
| Iowa income tax | -$62.62 |
| Take-home pay | $1,875.45 |
Iowa take-home pay at different salaries
Single filer, paid every two weeks, standard W-4, no benefits, no local tax.
| Salary | Per paycheck | Per year | To Iowa |
|---|---|---|---|
| $40,000 | $1,286.61 | $33,452 | $868 |
| $60,000 | $1,875.45 | $48,762 | $1,628 |
| $100,000 | $2,924.30 | $76,032 | $3,148 |
| $150,000 | $4,182.42 | $108,743 | $5,048 |
Living and working in Iowa
Iowa's state sales tax is 6.00%; with local add-ons the average combined rate is 6.94%, ranked 29 of 51 as of July 2026.
Iowa completed a rapid move from nine brackets to a single flat rate in the space of four years.
In retirement: Iowa does not tax Social Security, and from 2023 it exempts all retirement income for filers 55 and over, pensions, IRAs and 401(k)s included.
Iowa paycheck questions
How much is take-home pay on $60,000 in Iowa?
A single filer paid $60,000 a year every two weeks, with no pre-tax benefits, takes home about $1,875.45 a paycheck in Iowa ($48,762 a year). Each $2,307.69 paycheck loses $193.08 to federal income tax, $176.54 to Social Security and Medicare, $62.62 to Iowa income tax. That is $1,628 a year less than the same salary in a state with no income tax or payroll premiums.
How much Iowa income tax comes out of each paycheck?
Flat 3.8%. Iowa uses the federal standard deduction and adds a $40 personal credit per person. On a $60,000 salary that works out to about $62.62 every two weeks, an effective 2.71% of gross pay.
What else does Iowa take out of a paycheck?
Apart from income tax, Iowa requires no other employee payroll deduction, so the remaining lines on your stub are federal income tax, Social Security, Medicare and any benefits you chose.
Are there local income taxes on Iowa paychecks?
Yes. Most Iowa school districts levy a surtax calculated as a percentage of your state income tax, commonly 0% to 20%. Choose your city or county in the calculator, or enter its rate under “Other”.
I live in a neighboring state. Will Iowa tax my paycheck?
Not if you live in Illinois. Iowa has reciprocal agreements with those states, so you can give your employer the state's nonresidence form and have only your home state's tax withheld. Without the form, Iowa tax is withheld anyway and you must file a Iowa return to get it back.
How are bonuses withheld in Iowa?
Federally, a bonus paid separately is usually withheld at a flat 22% (37% on supplemental pay above $1 million in the year). For Iowa: Iowa withholds supplemental wages at the flat 3.8% rate.
Which form sets my Iowa withholding?
Iowa uses Form IA W-4 alongside the federal Form W-4. If you do not file one, your employer uses the state's default setting, usually single with no allowances or adjustments. Update it after marriage, a new child or a second job.