Your hub for Iowa taxes: state income tax (Flat 3.8%), plus free calculators for take-home pay, self-employment tax, quarterly estimates, and salary conversion.
Last updated: May 2026 · Data: IRS, BLS, Iowa Department of Revenue
Iowa levies a state income tax (Flat 3.8%) that is withheld from wages on top of federal tax and FICA. Iowa transitioned to a flat income tax rate of 3.8% for 2025, down from its previous graduated system. The state also fully exempts retirement income from state taxation.
| Tax | 2026 Rate / Detail |
|---|---|
| Iowa State Income Tax | Flat 3.8% |
| Iowa State Sales Tax (base) | 6% |
| Federal Income Tax | 10% to 37% (progressive brackets) |
| Social Security | 6.2% on first $176,100 |
| Medicare | 1.45% on all wages (plus 0.9% above $200,000) |
| Federal Standard Deduction (Single / MFJ) | $15,000 / $30,000 |
| Minimum Wage | $7.25 / hour |
| State Tax Authority | Iowa Department of Revenue |
Iowa has a state income tax. The 2026 rate is Flat 3.8%. This applies on top of federal income tax and FICA (Social Security and Medicare) withheld from your pay.
For 2026, Iowa income tax is Flat 3.8%. Iowa transitioned to a flat income tax rate of 3.8% for 2025, down from its previous graduated system. The state also fully exempts retirement income from state taxation.
A Iowa paycheck has federal income tax, Iowa state income tax (Flat 3.8%), Social Security (6.2% up to $176,100), and Medicare (1.45%) withheld. Try the take-home pay calculator for a personalized net-pay estimate.
Yes. Self-employed workers in Iowa generally make quarterly estimated payments to the IRS and to the state if they expect to owe tax. The quarterly estimated tax calculator estimates each payment and the due dates.
The Iowa statewide base sales tax rate is 6%. Local jurisdictions may add their own rates on top of the state rate.