Iowa Tax & Salary Calculators (2026)
Everything you need to work out pay and tax as a Iowa resident in 2026, in one place. Iowa applies a flat 3.80% income tax after a $2,210 state standard deduction. Federal income tax and FICA (6.2% Social Security up to $184,500 plus 1.45% Medicare) apply on top, identically in every state — the Iowa layer is what makes your net pay different from a neighbour's.
Iowa accelerated its tax reform: from 9 brackets and a 8.53% top rate in 2022, it now has a single 3.8% flat rate as of 2025. Cost of living in Iowa sits at index 90 (US average = 100), median household income is $71,433, and a one-bedroom apartment in Des Moines rents for around $1,100 per month. The local economy leans on insurance, finance, and agriculture.
Iowa calculators
Iowa income tax brackets 2026 (single filer)
| Taxable income | Rate |
|---|---|
| $0 and up | 3.80% |
Iowa tax facts beyond income tax (2026)
| State sales tax | 6% |
| Avg. effective property tax | 1.5% of home value |
| Minimum wage 2026 | $7.25 / hour |
| Top state income tax rate | 3.80% |
| Reciprocity agreements | Illinois |
Iowa charges a 6% state sales tax, homeowners pay an average effective property tax of 1.5% of market value, and the minimum wage in force during 2026 is $7.25 an hour. Local option sales tax of 1% applies in most jurisdictions.
Iowa adds no state-mandated employee payroll deduction beyond federal FICA, so your gross-to-net gap comes only from federal tax and Iowa income tax.
Iowa fully exempts retirement income for filers 55 and older, including pensions and IRA distributions.
Commuting and remote work across Iowa lines
Iowa holds income-tax reciprocity agreements with Illinois. If you commute between them, your wages are taxed only by your state of residence — file the exemption certificate with your employer so the wrong state is not withheld from every paycheck.
If you work remotely for an out-of-state employer, the state where you physically sit normally has the first claim on your wages, while your employer may still be required to register for Iowa withholding. Keep a day-count record whenever you split the year between Iowa and Illinois.
Iowa vs Illinois: $75,000 salary compared
| Measure | Iowa | Illinois |
|---|---|---|
| Annual take-home | $58,826 | $57,880 |
| Effective tax rate | 21.6% | 22.8% |
| Cost-of-living index | 90 | 93 |
| Property tax rate | 1.5% | 2.07% |
| State sales tax | 6% | 6.25% |
The paycheck difference is $946 a year on a $75,000 salary, but the full picture depends on housing: a one-bedroom in Des Moines runs about $1,100 a month, and property and sales taxes shift the balance again. See the Illinois hub for the mirror view.