Estimate your take-home pay in Iowa for 2026. The state levies income tax with a top rate of 3.8% (Flat rate of 3.8%). This means a portion of every paycheck goes toward state income tax in addition to federal withholding, Social Security, and Medicare.
Iowa Tax Snapshot
- State Income Tax
- 3.8% top rate
- Sales Tax (state + local avg)
- 6.94%
- Avg Property Tax Rate
- 1.52%
- Median Home Value
- $181,400
- State Minimum Wage
- $7.25/hr
Did You Know?
Iowa collapsed its 9 brackets into a flat 3.8% rate effective 2026.
How Iowa Taxes Affect Your Paycheck
When you earn a paycheck in Iowa, your employer withholds federal income tax, Social Security (6.2%), and Medicare (1.45%). On top of that, the state withholds income tax based on flat rate of 3.8%. The state minimum wage is $7.25 per hour, which sets the floor for hourly workers. Understanding these deductions helps you budget effectively and plan for the average 1.52% property tax rate on homes valued around $181,400.
Iowa also levies a combined state and average local sales tax of 6.94%, which affects your overall purchasing power. Factor this into your budget when calculating how far your paycheck stretches.