Iowa Payroll Tax Calculator 2026
Calculate Iowa state income tax, federal withholding, Social Security, Medicare, and net take-home pay.
2026 Iowa tax rates · FICA · Iowa IA W-4
State Income Tax
3.9% flat rate
Social Security
6.2%
Medicare
1.45%
State Form
Iowa IA W-4
Calculate Your Iowa Paycheck
Enter your salary or hourly rate and get a full breakdown: Iowa state tax, federal income tax, Social Security, Medicare, and exact net pay.
Open Iowa Payroll Tax CalculatorFree · No signup · 2026 IRS & IA rates
Iowa Tax Guide
Iowa Payroll Tax Overview 2026
Iowa uses a flat 3.9% income tax rate. All taxable income is taxed at the same percentage, regardless of how much you earn. This makes payroll calculations straightforward.
Iowa moved to a flat 3.9% income tax in 2026 under SF 2442 (2022 tax reform). The prior multi-bracket system with rates up to 8.53% was fully phased out.
Iowa's shift to a flat 3.9% rate is one of the most significant state tax reforms in recent years — a drop from a top rate of 8.53% as recently as 2022.
Iowa Payroll Tax Summary
State Income Tax3.9% flat rate
Tax TypeFlat rate
Social Security6.2% on first $176,100
Medicare1.45% (+ 0.9% over $200K)
FUTA (employer)0.6% on first $7,000
Employee FormIowa IA W-4
FAQ
Iowa payroll tax questions
What is the Iowa income tax rate for 2026?
Iowa uses a flat 3.9% income tax rate on all taxable income. Unlike progressive-tax states, the same rate applies whether you earn $30,000 or $300,000. This makes Iowa payroll tax calculations simple and predictable.
What taxes do Iowa employees pay on their paycheck?
Iowa employees pay: (1) Federal income tax (based on W-4 withholding); (2) Social Security tax (6.2% on wages up to $176,100); (3) Medicare tax (1.45%, plus 0.9% on income over $200,000); (4) Iowa state income tax (3.9% flat rate); The employer matches the Social Security and Medicare portions.
What payroll withholding form do Iowa employees use?
Iowa employees complete Iowa IA W-4 for state withholding in addition to the federal W-4. Employers use both forms to calculate the correct combined withholding amount.
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