What is different in Iowa:
- Flat 3.8% income tax on wages.
- No local income tax: cities and counties cannot add their own.
- The 3.8% applies to wages after pre-tax deductions like a 401(k).
- Federal income tax, Social Security and Medicare work exactly as in every other state.
What a Iowa paycheck looks like at six salaries
Single filer, paid every two weeks, no 401(k) or other deductions, 2026 figures. Every number below comes from the same tested formulas the calculator above uses.
| Salary | Federal income tax | Social Security + Medicare | Iowa tax | Take-home / year | Take-home / paycheck |
|---|---|---|---|---|---|
| $41,000 | $2,740 | $3,137 | $1,558 | $33,566 | $1,290.98 |
| $61,000 | $5,140 | $4,667 | $2,318 | $48,876 | $1,879.83 |
| $81,000 | $8,990 | $6,197 | $3,078 | $62,736 | $2,412.90 |
| $104,000 | $14,050 | $7,956 | $3,952 | $78,042 | $3,001.62 |
| $134,000 | $20,894 | $10,251 | $5,092 | $97,763 | $3,760.12 |
| $174,000 | $30,494 | $13,311 | $6,612 | $123,583 | $4,753.19 |
Worked example: $74,000, married, paid twice a month
Married filing jointly, paid twice a month, 6% of salary to a traditional 401(k) — $185.00 per paycheck, $4,440 a year — in Iowa.
- Taxable income: $74,000 − $4,440 401(k) − $32,200 standard deduction (married filing jointly) = $37,360.00.
- Federal income tax on that amount: $3,987.20 a year.
- Social Security: $4,588.00; Medicare: $1,073.00. The 401(k) does not reduce these.
- Iowa state income tax: $2,643.28.
- Take-home: $74,000 − $4,440 − $3,987.20 − $4,588.00 − $1,073.00 − $2,643.28 = $57,268.52 a year, or $2,386.19 per semimonthly paycheck.
Worked example: $23 an hour in Iowa
A single worker earns $23.00 an hour for 40 hours a week: $23.00 × 40 × 52 = $47,840 a year before tax. After federal income tax ($3,561), Social Security ($2,966) and Medicare ($694) ($1,818 of Iowa tax), take-home is $38,802 a year — about $1,492.37 per biweekly paycheck.
Iowa vs Illinois: $81,000
The same single worker earning $81,000, paid biweekly with no 401(k). Iowa's 3.8% takes $3,078 a year; Illinois's 4.95% takes $4,010.
| Iowa | Illinois (4.95% flat) | |
|---|---|---|
| Federal income tax | $8,990 | $8,990 |
| Social Security + Medicare | $6,197 | $6,197 |
| State income tax | $3,078 | $4,010 |
| Take-home per year | $62,736 | $61,804 |
The Iowa worker keeps -$932 more per year than the Illinois worker — about -$35.83 per paycheck. To compare every no-tax and flat-tax state side by side, see take-home pay by state. Also see our Illinois paycheck calculator.
What Iowa does not tax — and what it does
Iowa's flat 3.8% is the product of a multi-year flattening of its old nine-bracket system — one of the biggest simplifications any state has done. There is no local income tax. Iowa's 6% state sales tax (plus local add-ons) and its agricultural land base do much of the remaining revenue work.
What this page leaves out
Child and dependent credits, itemized deductions, health premiums, 401(k) contributions beyond the examples above, bonuses and overtime are not in the simplified calculator — the full paycheck calculator covers all of them, with Iowa at its 3.8% flat rate. For exact figures use your employer's payroll system or the IRS Tax Withholding Estimator.
Sources and review
Brackets and standard deductions come from IRS Revenue Procedure 2025-32. The Social Security wage base comes from the Social Security Administration, and Iowa’s 3.8% flat rate is confirmed by the Tax Foundation's 2026 state rates. Last reviewed September 2026. See our methodology for how every figure is checked.