Iowa Paycheck Calculator & Income Tax Rates (2026)
Iowa has a flat 3.8% income tax. On a $100,000 salary a single filer keeps $75,937 after federal tax, FICA and $3,188 in state income tax — an effective rate of 24.1%, ranking #15 of 50 states for take-home pay.
Iowa Take-Home Pay Calculator
Pre-loaded with Iowa's 2026 brackets and standard deduction. Adjust salary and filing status; switch states to compare.
2026 Iowa Income Tax Brackets
Iowa taxes all taxable income at a single 3.8% rate. The only thing that changes your bill is the deduction that comes off the top first.
| Taxable income | Rate |
|---|---|
| Over $0 | 3.8% |
Take-Home Pay at Every Income Level in Iowa
With a flat state rate the marginal state rate is constant, but the overall effective rate still rises because federal brackets are progressive.
| Gross Salary | Federal Tax | FICA | State + Local | Take-Home | Effective Rate | Monthly | Marginal State |
|---|---|---|---|---|---|---|---|
| $40K | $2,620 | $3,060 | $908 | $33,412 | 16.5% | $2,784 | 3.8% |
| $50K | $3,820 | $3,825 | $1,288 | $41,067 | 17.9% | $3,422 | 3.8% |
| $60K | $5,020 | $4,590 | $1,668 | $48,722 | 18.8% | $4,060 | 3.8% |
| $75K | $7,725 | $5,738 | $2,238 | $59,299 | 20.9% | $4,942 | 3.8% |
| $100K | $13,225 | $7,650 | $3,188 | $75,937 | 24.1% | $6,328 | 3.8% |
| $120K | $17,625 | $9,180 | $3,948 | $89,247 | 25.6% | $7,437 | 3.8% |
| $150K | $24,774 | $11,475 | $5,088 | $108,663 | 27.6% | $9,055 | 3.8% |
| $200K | $36,774 | $14,339 | $6,988 | $141,899 | 29.1% | $11,825 | 3.8% |
Single vs. married filing jointly in Iowa
Iowa's joint deduction are the same as single brackets, so the marriage effect here comes from the deduction and the federal side. On $100,000 a joint return keeps $82,134 versus $75,937 for a single filer.
| Household income | Single take-home | Married (joint) take-home | Difference |
|---|---|---|---|
| $75K | $59,299 | $62,996 | +$3,697 |
| $150K | $108,663 | $118,599 | +$9,936 |
| $250K | $174,376 | $188,662 | +$14,286 |
How Iowa Taxes Income
Iowa has one of the newest flat taxes in the country. As recently as 2022 the state ran nine brackets topping out at 8.53%; a 2022 law collapsed them to four in 2023 and three in 2024, with a 5.7% top rate, and a 2024 follow-up law jumped straight to the endpoint, putting a single 3.8% rate on all taxable income from tax year 2025. That rate carries into 2026 unchanged. The 3.8% applies to wages, self-employment income, interest, dividends, and capital gains alike, but the base is unusually narrow because Iowa exempts essentially all retirement income for taxpayers 55 and older. Iowa also dropped its long-standing deduction for federal income taxes paid starting in 2023 and now pegs its standard deduction to the federal amount, so the return is far simpler than it was a few years ago. One quirk survives: most school districts add a surtax computed as a percentage of your state tax bill rather than of your income.
Deductions, exemptions and credits
Iowa's standard deduction is pegged to the federal amount, so it moves whenever Congress changes the federal figure. Itemizing is still permitted on Iowa Schedule A, though the deduction for federal income taxes paid ended in 2023. Notable credits: a refundable earned income credit equal to 15% of the federal credit, a tuition and textbook credit worth 25% of the first $2,000 per K-12 student, a child and dependent care credit, and a deduction for College Savings Iowa 529 contributions.
Local income taxes in Iowa
No Iowa city or county levies an income tax, but most school districts do, in the form of an instructional support surtax. The large majority of districts impose one, expressed as a percentage of your state income tax liability — commonly in the single digits, with 20% the statutory cap. Because it is a percentage of state tax rather than of income, a 10% surtax on a $3,800 state bill adds $380.
Beyond the Paycheck: Sales and Property Tax
Sales tax
The state sales tax is 6%, and nearly every city and county adds a 1% local option tax, so 7% is the effective rate almost everywhere in Iowa — middle-of-the-pack nationally and below the Twin Cities or Chicago-area rates across the border. Groceries and prescription drugs are exempt. Clothing is taxable except during the annual August sales tax holiday. Iowa taxes an unusually broad range of services, one reason the state rate has held at 6% since 2008.
Property tax
Property taxes are high — effective rates run around 1.4–1.5% of market value, one of the largest tax bills an Iowan pays. Residential property is assessed at market value but taxed on a rolled-back share of roughly 46–47%, which keeps bills from being worse. A 2023 law gave homeowners 65 and older a $6,500 assessed-value exemption on top of the homestead credit, raised the military exemption to $4,000, and capped growth in most city and county levies.
How Iowa Taxes Retirement Income
Iowa is one of the most retiree-friendly states with an income tax. Since 2023, taxpayers 55 and older — plus disabled taxpayers and surviving spouses — exclude all retirement income from Iowa taxable income: pensions, 401(k) and 403(b) withdrawals, traditional IRA distributions, annuities, and IPERS public pensions, with no dollar cap. Social Security is not taxed. Military retirement pay and survivor benefits are exempt at any age. Retired farmers 55 and older can additionally exclude cash rent from farmland held at least ten years, or make a one-time election to exclude the gain on selling it. Withdrawals taken before 55 are taxed at 3.8%. A couple in their 60s living on a pension and IRA withdrawals typically owes Iowa nothing.
Who Comes Out Ahead in Iowa
Retirees over 55 win outright — no state tax on pensions, IRAs, or Social Security puts Iowa alongside Mississippi and Illinois for retirement income. High earners do well at 3.8%, though a school surtax can nudge the effective rate above 4% in some districts. Dual-income couples face no marriage penalty under a flat rate. Illinois residents who work in Iowa, and vice versa, pay only their home state under reciprocity. Self-employed Iowans pay 3.8% on net profit with no local tax. The losers are homeowners: high property taxes claw back part of what the income tax cuts gave.
Living on Iowa's Median Income ($58,000)
The median household income in Iowa is $58,000, which is $47,191 a year ($3,933 a month) after all taxes. That is close to the national median. After adjusting for cost of living, the purchasing power of that take-home is equivalent to $53,023 in an average-cost area.
Where Iowa Ranks on a $100,000 Salary
Iowa ranks #15 of 50 for raw take-home pay and #8 for cost-adjusted purchasing power at $100,000. The 7-place gap between the two reflects a below-average cost of living that boosts real purchasing power. The best state (Alaska) leaves $79,125; the worst (Oregon) leaves $70,932. Iowa is $3,188 behind the leader.