Iowa Paycheck Calculator

Iowa underwent a significant tax reform starting in 2022, collapsing its complex multi-bracket graduated system into a single flat rate. In 2026, Iowa's flat income tax rate is 3.8%, down from the prior top rate of 8.53%. This is one of the more dramatic state income tax reductions in recent history, making Iowa one of the fastest-improving states for take-home pay.

The reform also eliminates Iowa's previous deductibility of federal income taxes — a unique feature of the old Iowa tax code that made calculations especially complex. Under the new flat system, Iowa taxation is straightforward: 3.8% on Iowa taxable income, starting from federal adjusted gross income with standard Iowa modifications.

Iowa does not have city income taxes in Des Moines, Cedar Rapids, Davenport, or any other city. Iowa also does not have an SDI program. The standard deduction for Iowa conforms to federal amounts under the 2022 reform, simplifying the computation significantly for most taxpayers.

Country

Gross income

$

United States settings

Take-home pay /2 wks

$2,909

$75,642 / year

$3,846

Gross /2 wks

$937

Total deductions

24.4%

Effective tax rate

22.0%

Marginal tax rate

Take-home75.6%
Take-home$75,642
Federal/Income tax$13,459
FICA / NI / CPP$7,650

Disclaimer

This calculator provides estimates for informational purposes only. Actual tax withholding may vary based on specific circumstances. This is not tax, legal, or financial advice. Consult a qualified professional for personalized guidance.

No personal data leaves your browser. All calculations happen locally. Shareable links encode your inputs in the URL — don't share links with sensitive salary details publicly.

Tax tables: 2026 IRS Publication 15-T | HMRC 2025-2026 | CRA 2026 | ATO 2025-2026 | Income Tax India FY 2025-26

Key Tax Facts

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Iowa flat income tax: 3.8% in 2026 (down from top rate of 8.53% under prior graduated system).

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Iowa eliminated its federal deductibility rule under the 2022 tax reform.

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No city income taxes in Des Moines, Cedar Rapids, or any Iowa municipality.

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Iowa standard deduction now conforms to federal amounts.

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401(k) contributions reduce Iowa taxable income under the new system.

Frequently Asked Questions

What is Iowa's income tax rate?expand_more
Iowa has a flat 3.8% income tax rate in 2026. Under a 2022 reform, Iowa is transitioning from a complex graduated system (with rates up to 8.53%) to a single flat rate. The rate was 5.7% in 2023, 4.82% in 2024, 3.8% in 2026, moving toward a 3.5% target by 2027.
Did Iowa used to allow a deduction for federal income taxes paid?expand_more
Yes — under the old Iowa tax code, Iowa allowed residents to deduct their federal income tax from Iowa taxable income, which made Iowa's effective rate significantly lower than the stated graduated rates for high earners. The 2022 reform eliminated this federal deductibility, but lowered the flat rate dramatically in compensation.
Does Des Moines have a city income tax?expand_more
No. Iowa law prohibits municipalities from levying income taxes. Des Moines, Cedar Rapids, Davenport, and all other Iowa cities have no local income tax. All Iowa workers pay the same flat 3.8% state rate with no local surcharge.

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