How Iowa Taxes Your Paycheck
Iowa uses a flat income tax rate of 3.8%. Every dollar of taxable income above the standard deduction is taxed at the same rate.
Iowa transitioned from a 9-bracket system to a flat 3.8% rate in 2025 — one of the largest tax simplifications in recent state history.
Iowa Job Market Context
Insurance (Principal, Nationwide in Des Moines), agriculture, and renewable energy (wind power leads the country in % of generation).
Top Cities in Iowa
The largest population centers in Iowa:
- Des Moines — 213,000 residents
- Cedar Rapids — 136,000 residents
- Davenport — 100,000 residents
How Iowa Compares to Neighboring States
Single-filer take-home on a $75,000 annual salary in 2026, federal + state income tax + FICA only:
| State | Take-Home | vs. Iowa |
|---|---|---|
| Iowa (here) | $58,743 | — |
| Minnesota | $57,981 | -$761 |
| Wisconsin | $58,770 | +$27 |
| Illinois | $58,021 | -$721 |
| Missouri | $58,948 | +$206 |
| Nebraska | $58,884 | +$141 |
Take-home reflects single filer, no pre-tax deductions; SDI/PFML and local taxes excluded for an apples-to-apples comparison.
Frequently Asked Questions
What's the Iowa state income tax rate?
Iowa has a flat income tax rate of 3.8% for 2026. Whether you earn $40,000 or $200,000, your state tax rate is the same — applied to your taxable income after the standard deduction.
How much is taken out of my paycheck in Iowa?
For a single filer earning $75,000 in Iowa (2026), expect roughly $7,670 in federal income tax, $5,738 in FICA, and $2,850 in Iowa state tax — leaving about $58,743 take-home (21.7% effective tax rate). SDI/PFML and local taxes (if any) come out of that as well.
Is the Iowa median household income enough to live comfortably?
The 2023 ACS reported a Iowa median household income of about $75,500. Whether that's "comfortable" depends heavily on city — Des Moines cost of living can differ substantially from rural areas. Use the calculator above to model your specific salary and deductions.
How does this Iowa paycheck calculator work?
We calculate your annualized gross pay based on the pay frequency you select, then apply the 2025 or 2026 IRS percentage method for federal income tax, the Iowa state tax schedule (if any), Social Security, and Medicare. Pre-tax deductions like 401(k) and Section 125 health premiums reduce your taxable base before withholding is computed. You can switch between salary and hourly modes; hourly mode applies time-and-a-half to hours over 40/week prorated by pay period.