Iowa uses progressive tax brackets. Higher portions of pay are taxed at higher rates.
PayslipIQ provides educational information and estimated calculations only. It does not provide tax, legal, financial, accounting, employment, benefits, or payroll advice. PayslipIQ is not a CPA firm, law firm, financial advisor, payroll provider, or tax authority. Always verify your paycheck, deductions, withholdings, and tax position with your employer's payroll department, a qualified CPA, the IRS, your state tax authority, or another appropriately qualified professional. Calculations are estimates; your actual paycheck may differ based on factors specific to your employer, location, benefits elections, and personal tax situation.
How a Iowa paycheck is built
Every Iowa worker pays federal income tax, calculated on the W-4 you submitted to your employer using the IRS Publication 15-T tables. Federal income tax is followed by FICA: 6.2 percent Social Security up to the annual wage base, plus 1.45 percent Medicare on every dollar. The 0.9 percent Additional Medicare Tax applies once year-to-date wages cross $200,000 single or $250,000 married filing jointly.
Iowa adds progressive state income tax. The bracket you fall into depends on filing status and taxable income. Verify current brackets with the Iowa Department of Revenue.
Local taxes: Iowa has cities or counties that levy local income tax on top of state tax. Common examples are noted on the local-tax page.
What changed recently in Iowa
- Flat 3.8% rate effective 2025.
- Standard deduction increased.
- Federal income tax deduction on Iowa return phased out.
Iowa payroll quirks workers should know
- Iowa W-4 form for state withholding.
- No city or county income tax.
Example breakdown
A hypothetical Iowa worker on a $65,000 annual salary, paid bi-weekly, single filer, no extra adjustments. Educational only, your real paycheck differs.
| Gross (bi-weekly) | $2500.00 |
| Federal income tax | -$250.00 |
| Social Security (6.2%) | -$155.00 |
| Medicare (1.45%) | -$36.25 |
| Iowa state tax | -$112.50 |
| Estimated take-home | $1946.25 |
Run your own numbers in the Iowa paycheck calculator.
Authoritative sources
Frequently asked questions
- Does Iowa have state income tax?
- Yes. Iowa uses progressive brackets. Verify with the Iowa Department of Revenue.
- Are there local income taxes in Iowa?
- Yes. Iowa has cities or counties that add local income tax on top of state tax. Check your specific city.
- Does Iowa have State Disability Insurance or Paid Family Leave premiums?
- No. Iowa does not have state-mandated SDI or PFL employee premiums.
- Does Iowa have daily-overtime rules?
- No. Iowa follows federal FLSA: 1.5x for hours above 40 in a workweek.
- What is FICA on a Iowa paycheck?
- FICA is federal: 6.2 percent Social Security up to the annual wage base, plus 1.45 percent Medicare on every dollar. The 0.9 percent Additional Medicare Tax applies above $200,000 single or $250,000 married filing jointly. FICA applies in every state.
- Where do I verify Iowa state tax withholding?
- The Iowa Department of Revenue (https://tax.iowa.gov/) is the authoritative source. For your specific paycheck, contact your employer's payroll team or a CPA.
- Why did my Iowa state tax drop in 2025?
- Iowa consolidated brackets and lowered the flat rate to 3.8%. For most earners this is a meaningful cut.