Iowa Paycheck Calculator
Estimate Iowa take-home pay using taxes, FICA, deductions, and pay frequency to quickly calculate accurate paycheck amounts for workers statewide.
Iowa Income Tax Rate
Iowa has moved from many progressive brackets toward a simpler, lower-rate structure. Employers start with your gross pay, subtract pre-tax benefits (traditional 401(k), HSA/FSA, cafeteria-plan insurance), then apply federal withholding, FICA, and Iowa state tables using your IA W-4 elections and pay frequency. Credits, dependent allowances, and supplemental wage methods (bonuses/commissions) can change per-check results. Iowa does not levy separate city wage taxes, so state plus federal are your main income-tax layers. The table lists the top individual rate or structure by year to show the reform trend and how it may have affected paychecks.
| Year | Top Rate / Structure |
|---|---|
| 2016 | 8.98% (graduated brackets) |
| 2017 | 8.98% (graduated brackets) |
| 2018 | 8.98% (graduated brackets) |
| 2019 | 8.53% (graduated brackets) |
| 2020 | 8.53% (graduated brackets) |
| 2021 | 8.53% (graduated brackets) |
| 2022 | 8.53% (graduated brackets) |
| 2023 | 6.00% (fewer brackets) |
| 2024 | 5.70% (reduced brackets) |
| 2025 | 3.80% (flat, scheduled) |
Iowa Median Household Income
Iowa’s median household income has generally risen over the last decade, with pandemic-era turbulence followed by continued gains as labor markets tightened. Urban counties (Des Moines–West Des Moines, Iowa City, Cedar Rapids) often exceed the statewide median, while many rural areas trend lower. Use the figures below as directional, nominal benchmarks for budgeting or offer comparisons. For purchasing-power analysis, look at “real” (inflation-adjusted) dollars and consider household size, benefits, and local cost of living (housing, childcare, transportation). County-level medians can diverge meaningfully from statewide values, so always check the latest detailed estimates when making decisions.
| Year | Income |
|---|---|
| 2016 | $58,600 |
| 2017 | $60,500 |
| 2018 | $62,800 |
| 2019 | $64,900 |
| 2020 | $65,700 |
| 2021 | $68,100 |
| 2022 | $70,000 |
| 2023 | $72,800 |
| 2024 | $74,400 |
| 2025 | $75,600 (prelim.) |
Iowa Federal Insurance Contributions Act (FICA)
FICA funds Social Security and Medicare and appears on every Iowa paycheck. Employees pay 6.2% Social Security up to the annual wage base (employers match) and 1.45% Medicare on all wages (employers match). High earners also owe an additional 0.9% Medicare surtax above federal thresholds (not matched by employers). Pre-tax Section 125 health premiums typically reduce both income-tax and FICA wages; traditional 401(k) reduces income-tax wages but not FICA wages. Iowa does not alter FICA requirements, so they apply uniformly statewide. Your pay stub typically itemizes Social Security, Medicare, federal, and Iowa income tax separately.
Iowa Number of Cities with Local Income Taxes
Iowa does not impose city or county wage income taxes. Some school districts levy an income surtax based on state tax liability, but that is not a city wage tax.
| Locality | Resident Rate | Nonresident Rate |
|---|---|---|
| All Iowa cities/counties | None (no wage tax) | None |
How Your Iowa Paycheck Works
Each pay period begins with gross wages. Payroll subtracts pre-tax benefits—traditional 401(k), HSA/FSA, commuter, and pre-tax insurance—to determine taxable wages. Withholding then includes federal income tax (W-4), Social Security and Medicare (FICA), and Iowa state income tax using your IA W-4 elections and the state tables for your pay frequency. Post-tax deductions (Roth 401(k), wage garnishments, charitable contributions) are taken after taxes and do not reduce taxable wages. Pay schedule—weekly, biweekly, semimonthly, or monthly—changes per-check amounts but not annual liability. Always review your stubs after life events, address changes, or benefit updates.
Iowa Wage and Hour Laws: Overtime, Pay Frequency
Overtime: Iowa follows the federal FLSA—most non-exempt employees earn 1.5× their regular rate for hours worked over 40 in a workweek; exemptions apply where duties and salary thresholds are met.
Pay frequency: Employers must establish regular paydays and pay on consistent intervals. Biweekly and semimonthly schedules are common; salaried employees are often paid at least monthly. Final-pay timing and itemized wage-statement requirements apply under state and federal rules—check your employer’s policy and any contract terms.
FAQs
How do I use the Iowa Paycheck Calculator?
Enter gross pay, pay schedule, IA W-4 details, pre-tax benefits, and post-tax deductions; it estimates federal, FICA, and Iowa withholding.
What is Iowa’s current state income tax system?
Iowa is transitioning from multiple brackets to a lower, simpler structure. Your effective rate depends on income, status, and credits.
Do any Iowa cities have a wage income tax?
No. Cities and counties do not levy wage income taxes; some school districts impose an income surtax on state tax.
How do pre-tax 401(k) and HSA contributions affect take-home pay?
They reduce taxable wages for income tax, boosting net pay. 401(k) doesn’t reduce FICA; many health premiums do.
Are bonuses taxed differently in Iowa?
State withholding follows Iowa tables; federally, employers may use percentage or aggregate methods for supplemental wages like bonuses.
Why did my Iowa withholding change this year?
Rate reforms, IA W-4 updates, benefit elections, or supplemental pay can alter per-check withholding even at the same salary.
What is Iowa’s minimum wage?
Iowa’s minimum wage matches the federal rate unless changed by statute or employer policy; some employers pay above it to compete.
How often must I be paid in Iowa?
Employers set regular paydays and must pay consistently—commonly biweekly or semimonthly—subject to state timing and recordkeeping rules.
Do remote workers owe Iowa tax?
Residents owe tax on all income; nonresidents owe tax on Iowa-sourced wages. Credits may apply for other-state taxes.