Iowa Paycheck Calculator
Free Iowa paycheck calculator. Estimate your take-home pay with current Iowa state tax rates and federal withholdings. Calculate federal income tax, Social Security, Medicare, and Iowa state withholdings instantly.
What you should know about Iowa taxes
Iowa has been aggressively cutting income taxes — the top rate dropped from 8.53% to 6% in recent years and is scheduled to continue falling. Iowa is also one of three states that lets you deduct your federal taxes from state taxable income.
Iowa Income Tax Brackets — 2026
| Tax Rate | Taxable Income Range |
|---|---|
| 4.4% | $0 – $6,210 |
| 4.82% | $6,211 – $31,050 |
| 5.7% | $31,051 – $77,625 |
| 6% | $77,626+ |
Iowa Tax Rates Are Falling Fast
Iowa has cut income taxes dramatically over the past few years. The top bracket dropped from 8.53% to 6% and further reductions are on the legislative agenda. Iowa also allows you to deduct federal income taxes paid from your state taxable income — a rare perk shared only with Alabama and Louisiana. For a Des Moines worker earning $65,000, the effective Iowa tax rate after the federal deduction works out to roughly 4.2–4.8%. The standard deduction is $2,210 for single filers. There are no local income taxes in Iowa — some school districts levy a small surtax but it is collected annually, not through payroll withholding.
Working in Iowa's Growing Economy
Iowa's economy is anchored by agriculture, insurance (Des Moines is the insurance capital), and manufacturing. Principal Financial, Wellmark, John Deere, and a growing data center sector have pushed professional wages above national averages for the cost of living. The federal minimum wage of $7.25 technically applies, but actual starting wages in Des Moines typically begin at $13–$16. Iowa recently eliminated the state tuition tax credit which had provided some relief for student loan holders. If you are a remote worker who moved to Iowa from a high-tax state, the falling rates make it increasingly attractive.