Iowa variant. This is a Iowa-specific version of the Paycheck Calculator, using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Paycheck Calculator.
Iowa's state income tax (4.4-5.7%, transitioning to flat 3.9% by 2026) is the single biggest factor in how much of your paycheck you actually keep. On the state's median household income of $70,571, the state portion of your withholding looks very different from a neighbor across the border.
How Iowa income tax affects take-home pay
Iowa applies a top marginal rate of 5.7% (4.4-5.7%, transitioning to flat 3.9% by 2026). Your effective rate is lower than the top bracket because only income above each threshold is taxed at the higher rate, but high earners feel the full 5.7% on their last dollars.
Federal withholding, Social Security, and Medicare apply on top of any state tax. Use the calculator above to enter your exact gross pay, filing status, and pre-tax deductions (401(k), HSA, health premiums) for a precise Iowa take-home figure.
Iowa pay in context
The Iowa median household income is $70,571. Cost of living matters too: the state's median home value is $220,000 and the combined average sales tax is 6.94%, both of which shape how far your take-home pay stretches.
About taxes and housing in Iowa
Iowa is transitioning to a flat individual income tax, replacing its former graduated brackets.
Iowa has above-average property taxes that are administered locally and fund schools and county services.
Iowa's economy is led by agriculture, especially corn and soybeans, along with biofuels, insurance, and advanced manufacturing.
Worked example: $70,571 salary in Iowa
On a $70,571 salary, applying the 5.7% top marginal rate as a rough ceiling, state income tax is at most about $4,023 - your actual bill is lower thanks to the bracket structure and standard deduction. Add 7.65% FICA ($5,399) plus federal income tax to get total withholding.
Quick reference
- State income tax: 4.4-5.7%, transitioning to flat 3.9% by 2026
- State sales tax: 6% (plus 0.94% avg local)
- Median home value: $220,000
- Median household income: $70,571
- Effective property tax rate: 1.5%
- Avg auto insurance: $1,322/yr
Frequently Asked Questions
Does Iowa tax my paycheck?
Yes. Iowa withholds state income tax (4.4-5.7%, transitioning to flat 3.9% by 2026) in addition to federal tax and FICA.
What is the median income in Iowa?
The median household income in Iowa is $70,571 (US Census ACS).
How do I lower my Iowa withholding?
Increase pre-tax contributions (401(k), HSA, FSA) and confirm your W-4 allowances. The calculator above shows the take-home impact of each pre-tax dollar.