Estimates using federal brackets, FICA and your state rate. Not tax advice.
Iowa moved to a flat income tax structure for 2026, replacing the graduated bracket system that had been in place for decades. All taxable wage income is now taxed at a single 3.8 percent rate, regardless of how much you earn. The flat rate is the result of a phased reduction plan that Iowa legislators enacted in 2022, and it puts Iowa among the growing group of states that have shifted away from multi-bracket systems.
On a $65,000 salary, Iowa state income tax is about $2,470 per year at the 3.8 percent flat rate. Iowa allows a standard deduction and personal credits that can reduce your taxable base, so actual withholding may come in somewhat below the gross estimate, depending on your filing status and any adjustments your employer applies to your IA W-4.
Iowa does not impose a statewide local income tax, and most Iowa cities do not add a separate wage tax layer on top of the state rate. The calculator covers federal income tax brackets, FICA (Social Security and Medicare), and the Iowa flat rate, which you can adjust to reflect your specific withholding situation. All results are estimates only and do not constitute tax advice.
Compare take-home pay across pay types and periods, or check another state.
Iowa uses a flat 3.8 percent rate for 2026. The rate applies to all taxable wages and is the same regardless of income level.
At 3.8 percent, the estimate is about $2,470 per year before any credits or deductions. Your employer's withholding may differ slightly based on your IA W-4 allowances.
Yes. Iowa replaced its graduated bracket system with a flat 3.8 percent rate starting January 1, 2026, as part of a multi-year tax reform law passed in 2022.