Iowa payroll taxes

Iowa state income tax: Employers withhold Iowa tax using your IA W-4 and the state’s current withholding tables (Iowa has shifted toward flatter rates in recent years).
Local income tax: No city/county wage taxes; some school districts assess an income surtax on your state tax liability (settled on your return, not typical payroll withholding).
FICA (federal): Social Security and Medicare; details below.
Federal income tax (FIT): Withheld using IRS rules and your Form W-4.
State Unemployment Insurance (SUI): Employer-paid only; employees do not pay Iowa UI from wages.
Pre-tax deductions: 401(k), HSA/FSA, and Section 125 premiums can reduce taxable wages where eligible.
Post-tax deductions: Roth 401(k), garnishments, union dues, and other after-tax items reduce take-home after taxes.

How Your Iowa Paycheck Works

Start with gross pay (salary per period or hourly rate × hours; include overtime if due).
Subtract pre-tax items (traditional 401(k), HSA/FSA, cafeteria plans) to determine taxable wages.
Compute FICA (Social Security up to the annual wage base; Medicare on all wages; Additional Medicare for high earners).
Calculate federal withholding using IRS methods and your W-4 elections.
Calculate Iowa state withholding using IA W-4 details and state tables.
Note: No city/county wage tax is withheld; any school district surtax is reconciled on the tax return.
Employer separately pays Iowa SUI—this does not reduce your net pay.
Subtract any post-tax deductions to reach net pay.

Iowa unemployment insurance (SUI) — 10-year employee snapshot

Employees do not pay Iowa UI from wages. Employers contribute on a taxable wage base at experience or new-employer rates. Confirm the exact wage base and rate on the annual notice.

Year	Employee UI Rate	Employee Pays?	Employer Taxable Wage Base (note)	New Employer Rate (typ.)	Experienced Rate Range (approx.)
2016	0%	No	Set annually by Iowa Workforce Development	State schedule	Varies by experience class
2017	0%	No	Set annually by IWD	State schedule	Varies by experience class
2018	0%	No	Set annually by IWD	State schedule	Varies by experience class
2019	0%	No	Set annually by IWD	State schedule	Varies by experience class
2020	0%	No	Set annually by IWD	State schedule	Varies by experience class
2021	0%	No	Set annually by IWD	State schedule	Varies by experience class
2022	0%	No	Set annually by IWD	State schedule	Varies by experience class
2023	0%	No	Set annually by IWD	State schedule	Varies by experience class
2024	0%	No	Set annually by IWD	State schedule	Varies by experience class
2025	0%	No	Set annually by IWD	State schedule	Varies by experience class

Iowa salary threshold

Iowa follows federal FLSA white-collar rules. To classify as exempt (executive, administrative, professional), an employee must meet the current federal salary threshold and the duties tests. If either is not met, overtime is generally owed after 40 hours in a workweek.

Median Household Income — Iowa (10 years, current dollars)

Nominal values to illustrate trend; consult the latest ACS release for official statistics.

Year	Median Household Income
2015	$58,600
2016	$59,900
2017	$61,700
2018	$63,300
2019	$66,100
2020	$65,400
2021	$69,200
2022	$72,100
2023	$75,300
2024	$76,800

Iowa Federal Insurance Contributions Act (FICA)

Social Security: 6.2% employee + 6.2% employer, up to the federal wage base.
Medicare: 1.45% employee + 1.45% employer on all wages.
Additional Medicare: 0.9% employee-only on wages above $200,000 (employer remains 1.45%).

Number of cities that have local income taxes

Iowa does not have city or county wage-based income taxes. Paychecks are not reduced by local income tax percentages. However, many school districts impose an income surtax as a percentage of state tax owed, calculated on your tax return, not payroll. Confirm your district’s current surtax rate each tax year.

Local income tax table (employee wage tax)

Jurisdiction	Local Income/Wage Tax	Notes
Cities/Counties	None	No local wage-based income tax in Iowa
School Districts	Varies (0%–20% of state tax)	Surtax applied to state tax liability, settled on your return; not a percent of wages

Iowa Wage and Hour Laws: Overtime, Pay Frequency

Overtime: Iowa relies on FLSA—most non-exempt employees earn 1.5× after 40 hours/week (no statewide daily overtime rule).
Minimum wage: Follows the federal $7.25/hour baseline for most covered employers unless a local ordinance/contract sets higher rates.
Pay frequency: Employers must establish regular, reliable paydays (weekly, biweekly, or semimonthly are common) and pay all wages due on time; final-pay deadlines apply at separation.
Breaks/meals: Federal standards apply broadly; additional rules may cover minors and specific industries.

Additional Iowa forms

IA W-4 — Employee’s Withholding Certificate (Iowa state withholding elections).
Withholding returns — Employer deposit schedule (monthly/quarterly) and annual reconciliation with W-2 reporting.
UI Employer Registration & Rate Notice — Iowa Workforce Development account setup and annual rate assignment.
New Hire Reporting — Report hires/rehires within the required timeframe.
Required workplace posters — Minimum wage, wage payment, unemployment, and federal notices.

FAQs — Iowa Salary Paycheck Calculator

How do I use an Iowa Salary Paycheck Calculator to estimate net pay?

Enter your gross pay and pay frequency, federal W-4 and IA W-4 elections, pre-tax items (401(k), HSA/FSA), and post-tax deductions. The calculator applies FICA, federal withholding, and Iowa state withholding. There is no city/county wage tax; any school district surtax is reconciled on your return.

Does any Iowa city take a local income tax out of my paycheck?

No. Iowa has no city/county wage-based income tax. Some school districts impose an income surtax on your state tax liability, which is calculated at tax time, not withheld as a percentage of wages.

Why doesn’t my Iowa paycheck show unemployment tax like in a few other states?

Because Iowa UI is an employer-paid contribution. Employees do not pay UI from wages, so there’s no UI line on your pay stub.

What salary makes me exempt from overtime in Iowa?

Iowa follows federal FLSA rules. Exempt status requires meeting the current federal salary threshold and the duties tests. If those aren’t met, overtime is due after 40 hours in a week.

What Iowa form controls my state withholding?

IA W-4. Update it to reflect marital status, dependents, and additional withholding as needed—especially after life events or if you hold multiple jobs.

How are bonuses and commissions taxed on an Iowa paycheck?

They’re subject to federal withholding (IRS supplemental methods), FICA, and Iowa state withholding. No city/county wage tax applies. Employer UI remains an employer expense and does not reduce your net pay.

How often must I be paid in Iowa?

Employers must maintain regular, posted paydays and pay on time. Weekly, biweekly, or semimonthly schedules are common; final-pay timing depends on separation circumstances and policy.

Does the calculator handle HSA/FSA and 401(k) pre-tax deductions?

Yes. Enter those amounts; they reduce taxable wages for FIT/state and sometimes FICA, typically increasing your take-home compared with taking the same deductions after tax.

Why is my coworker’s net different even if our salaries match?

Differences in W-4/IA W-4 elections, pre-tax benefits, voluntary extra withholding, supplemental pay methods, and garnishments can all change taxable wages and withholding, leading to different net pay.

Where can I find official Iowa payroll guidance and forms?

See the Iowa Department of Revenue for IA W-4 and employer withholding instructions, Iowa Workforce Development for unemployment registration and rates, and IRS publications for federal rules and limits.

Iowa Salary Paycheck Calculator