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Free Iowa Tax Calculator

Calculate your 2026 Iowa take-home pay after 3.8% flat state tax, federal tax & FICA. No sign-up.

Last reviewed: January 2026 · Tax data verified against IRS Publication 15-T & state revenue departments

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How This Calculator Works

Iowa taxes income at a single flat 3.8% rate for 2026 — one of the lowest flat rates in the country. The old bracket ladder (the odd 2024 version had a 5.96% middle rate above a 5.7% top rate) is gone: all levels of taxable individual income are subject to the same 3.8%. Iowa lets you use the federal standard deduction ($16,100 single / $32,200 married) on the state return.

A $72,000 single salary: taxable income after the federal deduction is $55,900. The flat 3.8% applies to all of it — about $2,124, a 2.95% effective rate. Des Moines, Cedar Rapids, and Iowa City add no local income taxes.

Iowa is one of the states that taxes Social Security for high earners (phase-out starts at $75,000 for 2026, exempt below), though the exemption rules keep expanding. The state offers a notable deduction for federal income taxes paid — one of the last states to allow it — which softens the effective burden for mid-to-high earners.

Property tax runs 1.71% average — high, driven by school district levies — while combined sales tax is 6.94%. Iowa has also been cutting corporate rates aggressively, and the income tax is scheduled to keep simplifying toward a flatter structure in future years.

Filing in Iowa: the resident return is Form IA 1040, filed with the Iowa Department of Revenue — and Iowa's deadline is April 30, two weeks after the federal due date. Free e-file is available for most residents.

How It's Calculated

Formula

Net Pay = Gross Income − (Federal Tax + Iowa State Tax + FICA + Pre-tax Deductions)

Step-by-Step

  1. 1Multiply federal taxable income by the flat 3.8% — Iowa keeps the federal standard deduction
  2. 2Subtract pre-tax deductions (401(k), HSA) from gross pay to get adjusted gross income
  3. 3Apply the federal standard deduction ($16,100 single / $32,200 married) for federal taxable income
  4. 4Calculate federal tax using the 2026 progressive brackets (10%–37%) per IRS Publication 15-T
  5. 5Calculate FICA: 6.2% Social Security (up to $184,500) + 1.45% Medicare (no cap)
  6. 6Subtract all taxes and pre-tax deductions from gross pay to get net take-home pay

Example

A single filer earning $72,000 has $55,900 of federal taxable income. Iowa's flat 3.8% produces about $2,124 in state tax — a low 2.95% effective rate.

For detailed data sources and full methodology, see our Methodology & Data Sources page.

Key Rates & Data for 2026

IA Flat Tax Rate

3.8% (2026)

IA Standard Deduction

Federal SD ($16,100)

Federal Tax Deduction

Allowed (rare)

IA Avg Property Tax Rate

~1.71%

IA Avg Combined Sales Tax

6.94%

Frequently Asked Questions

Why does Iowa's fifth bracket have a higher rate than its top bracket?

Iowa's multi-year overhaul replaced the bracket ladder with a single flat rate — 3.8% for 2026 — and the rate is scheduled to fall further in future years.

Can I deduct federal income tax on my Iowa return?

Yes — Iowa is one of the last states allowing a deduction for federal income taxes paid, which softens the effective state rate for mid-to-high earners. Most states abandoned this decades ago.

Does Iowa tax Social Security?

Only for higher earners. The exemption phases out starting at $75,000 of income for 2026 — below that, Social Security is fully exempt. The exemption rules keep expanding under Iowa's tax overhaul.

Why are Iowa property taxes so high?

1.71% average — driven by school district levies. On a $250,000 home that's about $4,275 a year, which is why Iowa's overall burden runs higher than its income-tax rates alone suggest.

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