Taxes in Waterloo, Iowa
Complete tax guide for Waterloo, IA. State income tax up to 3.8%, 1.58% property tax, 7% sales tax. Calculate your total tax burden.
State Income Tax
3.8%
Iowa
Property Tax
1.58%
Effective rate
Sales Tax
7%
Combined rate
Tax Burden
Very Low
Waterloo, IA Tax Overview
Population
67,314
Median Income
$44,218
Cost of Living
81.3 (100 = avg)
State Income Tax
3.8%
Median Home Price
$135,000
Waterloo Tax Calculator
Pre-filled with Waterloo median: $44,218
Total Tax Burden in Waterloo
$8,331
Take-Home: $35,887 · Effective Rate: 18.84%
Federal Tax
$3,268
7.39% eff.
IA State
$1,680
3.80% eff.
FICA
$3,383
7.65% eff.
Take-Home
$35,887
81.16% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $44,218.00 | $3,684.83 |
| Federal Income Tax | -$3,267.66 | -$272.31 |
| Iowa State Tax | -$1,680.28 | -$140.02 |
| Social Security (6.2%) | -$2,741.52 | -$228.46 |
| Medicare (1.45%) | -$641.16 | -$53.43 |
| Take-Home Pay | $35,887.38 | $2,990.61 |
Property Tax in Waterloo
Median Home
$135,000
Annual Tax
$2,133
Monthly Tax
$178
Effective Rate
1.58%
Sales Tax in Waterloo
Combined Rate
7%
State Portion
~4.5%
Local Portion
~2.5%
The combined sales tax rate in Waterloo is 7%, which is below the national average of 7.12%. On a $100 purchase, you would pay $7.00 in sales tax.
Tax Burden Comparison
| Tax Type | Waterloo | Iowa Avg | National Avg |
|---|---|---|---|
| Income Tax | 3.8% | 3.8% | 4.6% |
| Property Tax | 1.58% | ~1.58% | 1.1% |
| Sales Tax | 7% | ~7% | 7.12% |
| Overall Burden | Very Low | — | Moderate |
Tax Saving Tips for Waterloo Residents
- Iowa's income tax rate of 3.8% is competitive. You may still benefit from maximizing 401(k) contributions ($23,500 limit) to reduce your taxable income at both state and federal levels.
- Property tax in Waterloo (1.58%) is above the national average. Check if you qualify for homestead exemptions or assessment appeals to reduce your property tax bill.
- Use a Health Savings Account (HSA) if eligible. Contributions are tax-deductible ($4,300 individual, $8,550 family), growth is tax-free, and withdrawals for medical expenses are tax-free.
Other Cities in Iowa
Calculate Your Full Iowa Tax Burden
See detailed state tax brackets, FICA breakdown, and compare to neighboring states.
Frequently Asked Questions
What are the tax rates in Waterloo, IA?
Waterloo, Iowa has a state income tax rate up to 3.8%. The property tax rate is 1.58% and the combined sales tax rate is 7%.
How much is property tax in Waterloo?
The effective property tax rate in Waterloo is 1.58%. On the median home price of $135,000, this equals approximately $2,133 per year or $178 per month. This is above the national average of 1.1%.
What is the sales tax rate in Waterloo?
The combined sales tax rate in Waterloo is 7%, which includes both state and local components. This is below the national average combined rate of approximately 7.12%.
How does Waterloo's tax burden compare to other cities?
Waterloo has a very low overall tax burden. The effective total tax rate for a median-income household is approximately 24.4%. The combination of 3.8% state income tax, 1.58% property tax, and 7% sales tax determines the total burden. Cost of living index is 81.3 (100 = national average).
Are there any local taxes in Waterloo?
Waterloo does not impose a separate local or city income tax. Residents pay the state income tax of 3.8%, federal income tax, and FICA (Social Security and Medicare).