Iowa income tax at a glance
Iowa completed its move to a flat 3.8% tax in 2025 and starts from federal taxable income. Retirement income is fully exempt for those 55 and older. Each person and dependent gets a $40 credit.
| Tax structure | Flat 3.8% |
| Figures for tax year | 2026 |
| Starting point | Federal taxable income |
| Standard deduction (single / joint) | $16,100 / $32,200 |
| Tax on $75,000 (single) | $2,198 (2.93%) |
| Rank at $75,000 | 36th highest of 42 |
| Local income taxes | Yes — see below |
| State sales tax | 6% |
How Iowa calculates your income tax
Iowa starts from your federal taxable income, so the federal standard deduction ($16,100 single, $32,200 joint) is built in. You also get a personal exemption credit of $40 per taxpayer and a credit of $40 per dependent.
Taxable income × 3.8% − credits = Iowa income tax
Iowa income tax rate (2026)
Iowa applies a single 3.8% rate to all taxable income for every filing status. There are no brackets to climb: each extra $1,000 of taxable income adds $38 of state tax.
Iowa standard deduction and exemptions
| Filing status | Standard deduction | Personal exemption | Per dependent |
|---|---|---|---|
| Single | $16,100 | $40 credit | $40 credit |
| Married filing jointly | $32,200 | $80 credit | $40 credit |
| Head of household | $24,150 | $40 credit | $40 credit |
Amounts before any income-based phase-outs. Because Iowa starts from federal taxable income, these equal the 2026 federal standard deduction.
Iowa income tax on $50,000, $75,000 and $100,000
Estimated 2026 tax for W-2 wages with the standard deduction, no children and no pre-tax deductions. Change any of these in the calculator above.
| Wages | Filing status | IA tax | Effective | Federal tax | FICA | Take-home | Monthly |
|---|---|---|---|---|---|---|---|
| $50,000 | Single | $1,248 | 2.50% | $3,820 | $3,825 | $41,107 | $3,426 |
| $50,000 | Married jointly | $596 | 1.19% | $1,780 | $3,825 | $43,799 | $3,650 |
| $75,000 | Single | $2,198 | 2.93% | $7,670 | $5,738 | $59,394 | $4,950 |
| $75,000 | Married jointly | $1,546 | 2.06% | $4,640 | $5,738 | $63,076 | $5,256 |
| $100,000 | Single | $3,148 | 3.15% | $13,170 | $7,650 | $76,032 | $6,336 |
| $100,000 | Married jointly | $2,496 | 2.50% | $7,640 | $7,650 | $82,214 | $6,851 |
Step by step: $75,000 single filer in Iowa
- Gross wages: $75,000
- Standard deduction: −$16,100
- Iowa taxable income: $58,900
- 3.8% on $58,900 = $2,238.20
- Credits: −$40
- Iowa income tax: $2,198 — 2.93% of gross pay, with a marginal state rate of 3.8%.
- With $7,670 of federal income tax and $5,738 of FICA, total tax is $15,606 and take-home pay is about $59,394 ($2,284 every two weeks).
Local income taxes in Iowa
Many school districts add an income surtax calculated as a percentage of your Iowa tax.
To include a local tax, type its rate in the “Other local / city income tax rate” box in the calculator. At a 1% local rate, $75,000 of wages would add about $750 a year.
Sales tax and other Iowa taxes
The Iowa state sales tax rate is 6%, and local governments may add their own rates on top. Spending $30,000 a year on taxable goods would cost roughly $1,800 in state sales tax alone.
Compare Iowa with neighboring states
State income tax on $75,000 of wages for a single filer in Iowa and its neighbors. Moving to South Dakota would cut state income tax on this salary by about $2,198 a year, while Minnesota would cost about $1,378 more.
| State | Type | Top rate | Tax on $75k | vs IA |
|---|---|---|---|---|
| Iowa | Flat | 3.8% | $2,198 | — |
| Minnesota | Graduated | 9.85% | $3,577 | +$1,378 |
| Wisconsin | Graduated | 7.65% | $2,944 | +$745 |
| Illinois | Flat | 4.95% | $3,568 | +$1,370 |
| Missouri | Graduated | 4.7% | $2,534 | +$335 |
| Nebraska | Graduated | 4.55% | $2,533 | +$335 |
| South Dakota | No income tax | — | $0 | −$2,198 |
If you live in one of these states and work in another, you generally file a non-resident return in the work state and claim a credit at home for the tax paid. Iowa has reciprocity with Illinois, so residents of those states working here (and vice versa) usually pay only their home state.
How to lower your Iowa income tax
- Pre-tax retirement savings. Putting $10,000 into a traditional 401(k) on a $75,000 salary cuts Iowa tax by about $380 on top of the federal savings.
- Claim state credits. Check the Iowa return for earned-income, child, education and renter or property-tax credits that this estimate doesn’t include.
- Watch residency and work location. Days worked in another state and the date you move in or out change how much each state can tax.
- Time large income. Bonuses, stock sales and Roth conversions all land on your state return too.
See all states side by side in the state income tax calculator, or check the federal side with the federal income tax calculator and your per-check withholding in the paycheck calculator.
Sources and updates
Rates, brackets and deductions are for tax year 2026. Source: official Iowa tax agency page, cross-checked with the Tax Foundation’s 2026 state income tax tables and 2026 state legislation. Data last reviewed November 4, 2026.
Iowa income tax FAQ
What is the Iowa state income tax rate?
Iowa has a flat 3.8% rate for 2026. A single filer earning $75,000 pays an effective rate of about 2.93%.
How much Iowa income tax do I pay on $75,000?
About $2,198 for a single filer and $1,546 for a married couple filing jointly, using the standard deduction. Including federal income tax and FICA, a single filer takes home about $59,394 a year.
What is the Iowa standard deduction?
You also get a personal exemption credit of $40 per taxpayer and a credit of $40 per dependent.
Does Iowa have local income taxes?
Many school districts add an income surtax calculated as a percentage of your Iowa tax.
Is Iowa a high-tax state?
On a $75,000 salary Iowa ranks 36 of the 42 jurisdictions that tax wages (1 = highest), among the lowest. Among its neighbors, South Dakota is cheapest at $0.