Iowa paycheck calculator 2026
Iowa moved to a single flat individual income tax rate of 3.80% effective January 1, 2026 (SF 134).
Enter pay details
Federal tax on a bonus paid on its own check is a flat 22% (37% above $1M of bonuses in the year). Your W-4 doesn't change it.
Per paycheck. Calculating from gross pay → other amounts
No state income tax on wages here.
More W-4, deductions and employer settings
- Standard deduction $16,100 single, $32,200 married jointly, $24,150 head of household
- Social Security 6.2% up to $184,500 · Medicare 1.45% (+0.9% over $200,000)
- FUTA 0.6% on the first $7,000 · bonus withholding 22%
- 401(k) limit $24,500 ($32,500 at 50+, $35,750 at 60–63)
Paycheck breakdown
Employer taxes (on top of gross pay)
Where the employer's money goes
Saved calculations stay in this browser. Nothing leaves your device.
Clear all saved calculations?
This removes every saved calculation from this browser. It can't be undone.
Iowa payroll taxes and rules for 2026
Iowa moved to a single flat individual income tax rate of 3.80% effective January 1, 2026 (SF 134). The 2024-and-later Iowa W-4 no longer uses an allowance count; instead, it sets a fixed per-period deduction by marital-status bucket, plus an optional dollar allowance amount and flat extra withholding. Iowa has no state disability, paid-leave, or employee-paid unemployment program.
- Income tax
- 3.80% flat · Employee form: Iowa W-4
- Flat 3.80% rate for all wages, effective 2026-01-01 under Iowa Code §422.5 as amended by SF 134.
- The 2024+ Iowa W-4 replaced allowance counts with a fixed per-period deduction set by a marital-status bucket (not the same number as the federal standard deduction).
- Employees can also enter a dollar 'total allowance amount' (commonly $40 per dependent/credit) that further reduces withholding.
- Employer contributions to retirement plans and employee health insurance are excluded from Iowa taxable wages, matching the federal exclusion for 401(k) and §125 cafeteria-plan deductions.
- Employer taxes
- State Unemployment Insurance (SUI): 1.00% new-employer rate (5.40% for new construction employers) on a $20,400 wage base 2025's Senate File 607 cut the 2026 wage base from $39,500 to $20,400 and capped the maximum experience rate at 5.4% (down from 9%).
- Local taxes
- Iowa has no local income or payroll taxes on wages.
- Bonuses
- Supplemental/overtime wages paid with regular wages are taxed together using the regular formula. Paid separately, the employer may apply the regular formula to the combined total and back out tax already withheld, or simply apply the flat 3.80% rate directly to the supplemental payment; since Iowa's tax is flat, both methods land on the same result.
- Minimum wage 2026
- $7.25/hour Iowa has not raised its state minimum wage above the federal rate since 2008; the federal rate applies.
- Pay frequency
- At least semimonthly for most employers (Iowa Wage Payment Collection Law); employers may request DOR approval for a different schedule.
- Final paycheck
- Due on the next regular payday, whether the employee quit or was discharged. Iowa has no accelerated deadline for involuntary termination.
- New-hire reporting
- Within 15 days of the hire date.
- Reciprocity
- None currently in effect. Iowa's former reciprocity agreement with Illinois ended in 2016.
Checked against official sources on October 5, 2026:
Take-home pay in Iowa by salary
| Salary | Federal tax | FICA | Iowa taxes | Take-home / year | Per paycheck | Employer cost |
|---|---|---|---|---|---|---|
| $40,000 | $2,620 | $3,060 | $1,026 | $33,294 | $1,281 | $43,306 |
| $60,000 | $5,020 | $4,590 | $1,786 | $48,604 | $1,869 | $64,836 |
| $80,000 | $8,770 | $6,120 | $2,546 | $62,564 | $2,406 | $86,366 |
| $100,000 | $13,170 | $7,650 | $3,306 | $75,874 | $2,918 | $107,896 |
| $150,000 | $24,734 | $11,475 | $5,206 | $108,585 | $4,176 | $161,721 |
Single filer, paid every two weeks, 2026 W-4 with no adjustments, default Iowa withholding settings, no 401(k) or benefits, new-employer unemployment rate. Iowa taxes include state income tax and employee-paid state programs; local taxes are not included unless the default setting includes them.
How the federal part works, step by step: the 2026 paycheck guide · Indiana · Kansas
Iowa paycheck questions
Does Iowa still use withholding allowances?
Not the way it used to. The 2024-and-later Iowa W-4 replaced the allowance count with a fixed per-period deduction based on a marital-status bucket, plus an optional dollar 'total allowance amount' the employee can still enter.
What's Iowa's withholding rate for bonuses?
The same flat 3.80% that applies to regular wages. Iowa doesn't publish a separate, higher supplemental rate because its income tax is already flat.
Do we need to withhold anything extra for Iowa disability or paid leave?
No. Iowa has no state disability insurance or paid family/medical leave program, and no employee-paid share of unemployment insurance.
Does an employee's 401(k) or health insurance deduction reduce Iowa withholding?
Yes. Iowa's withholding formula explicitly excludes employer-sponsored retirement and health insurance payments from taxable wages, mirroring the federal exclusion.
How much is $60,000 a year after taxes in Iowa?
About $48,604 a year, or $1,869 every two weeks, for a single filer with no other W-4 adjustments in 2026. Federal income tax is $5,020, Social Security and Medicare $4,590, and Iowa taxes and payroll deductions $1,786.
What does a $60,000 employee cost an employer in Iowa?
$64,836 a year before benefits: the salary plus the 7.65% FICA match, federal unemployment (FUTA) and Iowa unemployment insurance at the new-employer rate of 1% on the first $20,400.
Have a question? Write to us — real people answer.
Elevate your efficiency with the powerful yet easy-to-use accounting practice management software.
"Let's create a dream, where the team is happy, clients are well served and profits are fair." — Rain Allikvee, Co-founder of Uku
