How Much Is Iowa State Income Tax in 2026?
Iowa went from a top rate of 8.53% in 2022 to a simple flat 3.8% — one of the most aggressive tax overhauls in the country. Retirees 55+ pay nothing on retirement income. Estimate your 2026 take-home pay below.
State income tax
3.8%
2026
Standard deduction
$0
Single filer
$100k take-home
$75,992
Single filer
$75k take-home
$59,354
Single filer
Quick Answer: Iowa Income Tax at a Glance
Iowa went from a top rate of 8.53% in 2022 to a simple flat 3.8% — one of the most aggressive tax overhauls in the country. Retirees 55+ pay nothing on retirement income. Estimate your 2026 take-home pay below.
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How Iowa taxes your income in 2026
Iowa's flat 3.8% has been in effect since 2025, the final step of a multi-year reform that collapsed nine progressive brackets (top rate 8.53% as recently as 2022) into a single rate. Iowa uses your federal taxable income as the starting point, so the federal standard deduction is already reflected before the 3.8% is applied — there is no separate Iowa standard deduction.
Retirement income is fully off the table
Since 2023, Iowans 55 and older pay zero state tax on retirement income — pensions, 401(k) and IRA distributions, and Social Security are all exempt. That's on top of the flat-tax cut, making Iowa markedly friendlier to retirees than it was a few years ago. Iowa has no local income taxes; the main companion levies are the 6% state sales tax (plus up to 1% local option) and property taxes that run slightly above the national average.
What this calculator includes (and excludes)
This estimate covers federal income tax, FICA, and Iowa's 3.8% flat tax computed on federal taxable income — the same starting point an Iowa return uses. It does not model the retirement-income exclusion, itemized deductions, or credits. Figures are estimates for planning purposes, not tax advice.
Take-Home Pay by Income Level in Iowa
The table below shows estimated annual take-home pay for a single filer with no credits or pre-tax contributions. It includes federal income tax, FICA, and Iowa state income tax.
| Gross Income | Federal Tax | FICA | IA State Tax | Take-Home Pay |
|---|---|---|---|---|
| $50,000 | $3,820 | $3,825 | $1,288 | $41,067 |
| $75,000 | $7,670 | $5,738 | $2,238 | $59,354 |
| $100,000 | $13,170 | $7,650 | $3,188 | $75,992 |
| $150,000 | $24,734 | $11,475 | $5,088 | $108,703 |
| $200,000 | $36,734 | $14,339 | $6,988 | $141,939 |
Estimated Tax Breakdown
Frequently Asked Questions
What is the Iowa income tax rate in 2026?
A flat 3.8%. Iowa consolidated nine brackets (top rate 8.53% in 2022) into a single flat rate that took effect in 2025 — one of the largest state tax cuts in recent history.
Does Iowa have local income taxes?
No. Iowa cities and counties do not impose income taxes. School districts collect income surtaxes in a few cases, but there are no general local income taxes.
Does Iowa tax Social Security or retirement income?
No. Social Security is exempt for everyone, and since 2023 Iowans 55+ pay no state tax on any retirement income, including pensions and IRA/401(k) distributions.
How much is $75,000 after taxes in Iowa?
A single filer earning $75,000 pays roughly $2,238 in Iowa income tax and takes home about $59,354 per year after federal tax, FICA, and state tax, based on this calculator's 2026 estimates. See the example table above for details.
Why does this calculator use federal taxable income for Iowa?
Iowa's tax law starts from your federal taxable income, so the federal standard deduction is already subtracted before the 3.8% rate applies — the same way an actual Iowa return is computed.
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Disclaimer: This guide is for informational purposes only and does not constitute tax, legal, or financial advice. Figures are estimates for a single filer with the 2026 standard deduction and no credits. Sources: IRS Revenue Procedure 2025-32 (federal brackets and deductions); SSA (FICA wage base); Iowa Department of Revenue and Tax Foundation (state rates and context). Consult a qualified tax professional for advice specific to your situation.