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Iowa Take-Home Pay Calculator: 3.8% Flat Tax (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.

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$

Net annual pay

$75,992

Net monthly pay

$6,333

Net biweekly pay

$2,923

Tax breakdown

CategoryAmount% of income
Federal Income Tax$13,17013.2%
Social Security$6,2006.2%
Medicare$1,4501.5%
State Income Tax$3,1883.2%
Total tax$24,00824.0%

Effective tax rate: 24.0%. Marginal federal rate: 22.0%. Marginal state rate: 3.8% in Iowa.

Where your money goes

Estimates for informational purposes only — not tax advice. Excludes pre-tax contributions, credits, and local income taxes.

Compare with another state

See how Iowa's take-home pay ranks against another state.

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Example: take-home pay on common salaries in Iowa

Single filer, 2026 standard deduction, no pre-tax contributions or credits. Computed by the same engine as the calculator above.

Gross salary Federal tax FICA Iowa tax Net annual pay Effective rate
$75,000 $7,670 $5,738 $2,238 $59,354 20.9%
$100,000 $13,170 $7,650 $3,188 $75,992 24.0%

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.

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.

Data sources

Reviewed by the PayFigi research team. Last verified: 2026-07-27. These figures are estimates for informational purposes only and are not tax advice; consult a tax professional for advice specific to your situation.