Iowa charges 3.8% flat state income tax. Use the stock option tax calculator pre-loaded with Iowa rates.
Open Stock Option Tax Calculator →Stock option exercises in Iowa are subject to a flat 3.8% state income tax on top of federal tax. For NSOs, the spread at exercise is ordinary income subject to both federal and Iowa state tax plus FICA. For ISOs, while there is no regular tax at exercise, the spread counts for AMT purposes and for Iowa state tax calculations. This calculator helps you plan the optimal time and amount to exercise given Iowa's tax rates.
Iowa levies a flat 3.8% state income tax on all taxable income regardless of how much you earn. This makes tax planning straightforward: for every additional dollar you earn, 3.8 cents goes to Iowa. Iowa does not impose local income taxes, so the 3.8% flat rate is the only state-level income tax you owe.
The table below shows what you actually keep at five salary levels in Iowa, accounting for federal tax, FICA, and Iowa's flat 3.8% state tax.
See how Iowa compares to other Midwest states. Each link takes you to the stock option tax calculator landing page for that state.
For a comprehensive breakdown of Iowa’s tax structure, salary comparisons, cost-of-living analysis, and more, visit the full Iowa take-home pay page.