Iowa charges 3.8% flat state income tax. Use the employer cost calculator pre-loaded with Iowa rates.
Open Employer Cost Calculator →Employers in Iowa must withhold and remit the flat 3.8% state income tax, plus handle their share of FICA, FUTA, and Iowa's state unemployment insurance. The total cost to employ someone at a $75,000 salary in Iowa is typically 10-15% above the gross salary, covering the employer's payroll tax share, SUI, workers' comp, and benefits. This calculator breaks down the full employer cost with Iowa's specific tax rates.
Iowa levies a flat 3.8% state income tax on all taxable income regardless of how much you earn. This makes tax planning straightforward: for every additional dollar you earn, 3.8 cents goes to Iowa. Iowa does not impose local income taxes, so the 3.8% flat rate is the only state-level income tax you owe.
The table below shows what you actually keep at five salary levels in Iowa, accounting for federal tax, FICA, and Iowa's flat 3.8% state tax.
See how Iowa compares to other Midwest states. Each link takes you to the employer cost calculator landing page for that state.
For a comprehensive breakdown of Iowa’s tax structure, salary comparisons, cost-of-living analysis, and more, visit the full Iowa take-home pay page.