Iowa Paycheck & Income Tax Calculator

How Iowa income tax works

Iowa is now one of the simplest states to calculate. A single flat 3.8% applies to all taxable income, for every filing status, with no brackets to work through.

What makes Iowa unusually favorable is the base it applies to. Iowa includes the federal standard deduction in its income starting point, so a single filer shelters the full $16,100 before the state rate touches anything — roughly five times what Kentucky allows and nearly double Virginia’s.

On $75,000 that leaves $58,900 of Iowa taxable income and about $2,238 in state tax, an effective rate of around 3%. The combination of a low flat rate and a large federal-conforming deduction puts Iowa among the lighter income tax states, which is a recent development.

From nine brackets to one

Iowa’s income tax looks nothing like it did a few years ago, and this is the single biggest reason to distrust older figures for this state.

Until recently Iowa ran a nine-bracket schedule with a top rate of 8.53% — among the higher top rates in the country. A multi-year restructuring collapsed that schedule progressively, first to four brackets, then to a single flat 3.8%.

The change is dramatic enough that anything written before the reform completed describes a fundamentally different state. A high earner who paid 8.53% at the margin now pays 3.8% — less than half. Guidance quoting 8.53%, 6.5%, or a multi-bracket Iowa schedule is describing a system that no longer exists.

It also changes how Iowa compares regionally. Against Minnesota next door, where the top rate is 9.85% and the opening rate 5.35%, Iowa is now substantially lighter on income at almost every level.

The school district surtax

Iowa has a local tax that works unlike any other in the country, and it is worth understanding before trusting the figures above.

Many Iowa school districts levy a surtax — but it is charged as a percentage of the state income tax you owe, not as a percentage of your income. So if your district levies a 5% surtax and you owe $2,238 in Iowa tax, the surtax is about $112.

Two consequences follow. First, the amount depends on your district, and rates vary considerably across the state; some districts levy nothing at all. Second, because it is calculated on tax rather than income, anything that reduces your Iowa tax — the retirement exemption, for instance — reduces the surtax proportionally too.

It is generally a modest sum, far smaller than the county taxes in Indiana or Maryland, but it is real and it is not included on this page because there is no statewide figure to apply. Check your own district’s rate.

Take-home pay at every salary in Iowa

After federal tax, the flat 3.8% state tax and FICA. School district surtax is not included, for the reason above.

What lands in your account each payday

On $75,000 a year in Iowa, filing single, split across the pay schedules employers actually use.

Retirement income is untaxed from 55

Iowa made a substantial change for retirees in 2023, and it is more generous than most states that advertise being retirement-friendly.

Retirement income is exempt for anyone aged 55 or over, and also for those who are disabled or a surviving spouse. That covers pensions, 401(k) and IRA distributions and annuity income. Social Security is exempt at any age.

The threshold matters: at 55, Iowa’s exemption starts a full decade earlier than Georgia’s, which begins at 62. And unlike Michigan, where the equivalent treatment is still phasing in, or Minnesota, which taxes some Social Security, Iowa’s exemption is already in force and complete.

Combined with a flat 3.8% on whatever remains taxable, an Iowa retiree over 55 living mainly on retirement income will often owe nothing at state level at all. The calculator above models wage income and does not apply the exemption.

Dates that matter for the 2026 tax year

Iowa does not use the federal deadline. Returns (Form IA 1040) are due April 30, 2027 for the 2026 tax year, two weeks after the federal April 15.

School district surtax is reported on the same state return rather than separately. Estimated payments, if required, fall quarterly in April, June, September and the following January.

Questions people ask

What is the Iowa income tax rate for 2026?

A flat 3.8% on all taxable income, for every filing status. Iowa has no brackets — the same rate applies to the first dollar and the millionth.

What can I deduct in Iowa?

Iowa includes the federal standard deduction in its income starting point, so a single filer shelters $16,100 for 2026 and a couple filing jointly $32,200. There is no separate Iowa deduction to claim.

What is the Iowa school district surtax?

A local tax levied by many Iowa school districts, calculated as a percentage of the state income tax you owe rather than of your income. Rates vary by district, and some districts levy none at all. It is not included in the figures on this page.

Does Iowa tax retirement income?

Not for those aged 55 and over. Since 2023 Iowa has exempted retirement income — pensions, 401(k) and IRA distributions and annuities — for taxpayers 55 or older, disabled, or a surviving spouse. Social Security is exempt at any age. This calculator models wage income and does not apply it.

Are Iowa payroll deductions taken from my paycheck?

Not by the state. Iowa unemployment insurance is employer-funded and the state runs no disability or paid family leave program. Beyond state income tax and any school district surtax, the only deductions are federal.

When is the Iowa tax return due?

April 30, 2027, for the 2026 tax year, not April 15. Iowa sets its own deadline two weeks after the federal one.

Is my data sent anywhere?

No. The calculation runs entirely in your browser. There is no account, and the salary you type is never sent to a server or stored. It never leaves your device.