Iowa Income Tax Calculator
Calculate your total tax burden in Iowa. See IA state income tax (3.8% top rate), federal tax, and FICA combined. Free, instant, private.
The state of Iowa uses a flat 3.8% state income tax on all taxable income in 2026. State standard deduction: $14,600 single / $29,200 married. Plus federal income tax (10%-37% across 7 brackets) and FICA (Social Security 6.2%, Medicare 1.45%). Property tax averages 1.52% and sales tax averages 6.94%. Flat 3.8% in 2025 (was progressive to 8.53%). Uses federal standard deduction. Inheritance tax repealed 2025.
Iowa Income Tax Calculator
Pre-filled with Iowa median: $65,573
Your Total Tax Burden
$12,993
Take-Home: $52,580 · Effective Rate: 19.8%
Federal Tax
$6,040
9.2% eff.
IA State Tax
$1,937
3.0% eff.
FICA
$5,016
7.6% eff.
Take-Home
$52,580
80.2% kept
Tax Breakdown
Iowa Tax Bracket Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $65,573.00 | $5,464.42 |
| Federal Income Tax | -$6,040.06 | -$503.34 |
| Iowa State Tax | -$1,936.97 | -$161.41 |
| Social Security (6.2%) | -$4,065.53 | -$338.79 |
| Medicare (1.45%) | -$950.81 | -$79.23 |
| Take-Home Pay | $52,579.63 | $4,381.64 |
Marginal Tax Rate
3.8%
IA state only
Effective Tax Rate
19.8%
All taxes combined
Iowa Tax System Overview
Iowa transitioned to a flat 3.8% income tax in 2025, down from rates as high as 8.53%. Uses the federal standard deduction. Inheritance tax repealed in 2025. Property taxes are relatively high at 1.52%.
Top Income Tax
3.8%
Property Tax
1.52%
Sales Tax (Avg)
6.94%
Median Income
$65,573
Other Taxes in Iowa
Capital Gains Tax
Taxed as regular income at 3.8%
Property Tax
Average effective rate of 1.52%. On a $300,000 home, this equals approximately $4,560 per year, or $380 per month.
Sales Tax
State rate of 6%, with a combined average of 6.94% including local taxes.
Filing Tips for Iowa
Iowa's flat 3.8% is a significant improvement. Federal standard deduction applies. Retirement income exclusions available. Consider high property taxes when evaluating housing.
- Maximize pre-tax contributions to 401(k) ($23,500 limit in 2026, $31,000 if 50+) to reduce both federal and IA state taxable income.
- Use an HSA if you have a high-deductible health plan. Contributions ($4,400 individual, $8,750 family) are pre-tax and reduce your tax burden.
- Review your W-4. If you regularly get large refunds, adjust your withholding to keep more money in each paycheck throughout the year.
Compare Iowa to Nearby States
If you lived in a neighboring state instead, here is how your state tax would change on $65,573 income:
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Frequently Asked Questions
What is the income tax rate in Iowa?
Iowa has a flat income tax rate of 3.8%. This means all taxable income is taxed at the same rate regardless of how much you earn. Flat 3.8% in 2025 (was progressive to 8.53%). Uses federal standard deduction. Inheritance tax repealed 2025.
How much state tax will I pay in Iowa on $65,573?
On income of $65,573 filing single in Iowa, you would pay approximately $1,937 in state income tax (effective rate of 3.0%). This is after the state standard deduction of $14,600.
Does Iowa tax capital gains?
Taxed as regular income at 3.8%. Capital gains treatment varies by state — some tax them as regular income while others offer exclusions or preferential rates.
How does Iowa compare to neighboring states for taxes?
Iowa's neighboring states include Minnesota (9.85% top rate), Wisconsin (7.65% top rate), Illinois (4.95% top rate). Property tax rates, sales taxes, and cost of living should also be considered when comparing overall tax burden. Use the calculator above to compare your specific tax liability across states.
What is the Iowa state income tax filing deadline for 2026?
Iowa state income tax returns are due April 15, 2026 (matching the federal deadline). If April 15 falls on a weekend or holiday, the deadline shifts to the next business day. Extensions: Iowa typically grants automatic 6-month extensions to October 15, 2026, but tax owed must still be paid by April 15 to avoid penalties.
Does Iowa tax retirement income, Social Security, and pensions?
Iowa taxes retirement income with state-specific exclusions. Social Security: only 11 states tax SS benefits in 2026 (CO, CT, KS, MN, MT, NM, RI, UT, VT, WV, MO partially); Iowa's treatment varies. Pensions and 401(k)/IRA withdrawals are generally taxable as ordinary income at 3.8% top rate, with possible exclusions for federal/military pensions or low-income seniors. Check Iowa's 2026 retirement income exclusion thresholds.
What deductions and credits are unique to Iowa in 2026?
Iowa offers standard deduction of $14,600 (single) / $29,200 (married). Additional state-specific items typically include: Iowa-specific tax credits (e.g., property tax credit, education credit, EITC supplement if available), retirement income exclusions, and state-conformity to federal deductions like SALT cap, mortgage interest, charitable contributions. Check Iowa's state tax form for the full list of state-specific credits in 2026.
If I work remotely in Iowa for an out-of-state employer, what tax do I pay?
As a Iowa resident working remotely for an out-of-state employer, the rules depend on reciprocity agreements. Reciprocity-pair states (PA-NJ, IL-IA, MI-OH, etc.) let you pay tax only to Iowa. Without reciprocity, you may pay tax to BOTH states, then claim a credit on Iowa's return for taxes paid to the work state. NY, PA-Philadelphia, and other "convenience of employer" jurisdictions can override these rules. Verify your employer's state tax setup.