Overtime Pay Calculator — Iowa (2026)
Overtime in Iowa starts with the federal FLSA floor: 1.5× your regular rate for every hour beyond 40 in a workweek. Some states add daily overtime or double-time rules on top. This calculator shows gross overtime pay and what survives federal, FICA and Iowa taxation in 2026. Iowa uses a flat personal income tax of 3.80% applied to taxable income after a state standard deduction of $2,210.
Iowa Overtime Pay Calculator
Your base pay per hour.
Hours beyond 40 in the workweek.
Overtime rules that apply in Iowa
Iowa follows the federal weekly standard: overtime is owed after 40 hours in a workweek, with no general daily overtime requirement.
The "regular rate" is not just your base hourly wage — non-discretionary bonuses, shift differentials and commissions must be folded in before multiplying by 1.5, which raises the true overtime rate for many insurance workers around Des Moines.
Is overtime taxed more in Iowa?
No — overtime is ordinary wages. It can feel over-taxed because per-period withholding tables annualize a big check as if every week looked like that, temporarily withholding at a higher rate that you recover at filing.
The Iowa layer applies to overtime exactly as to base pay, at rates up to 3.80%.
Exempt vs non-exempt in Iowa
Salaried does not mean exempt. To be exempt from overtime a worker must clear both a salary threshold and a duties test; misclassification is one of the most common wage claims filed in Iowa.
Cost of living in Iowa sits 10% below the national average (index 90), median household income is $71,433, and a one-bedroom apartment in Des Moines rents for roughly $1,100 a month.
Local and payroll taxes Iowa adds on top
Iowa adds no state-mandated employee payroll deduction beyond FICA, so nothing extra is taken from your gross pay at the state level.
Iowa has no separate city or county income tax, so the state figure above is the full sub-federal income tax you pay.
Overtime hours carry exactly the same local withholding as regular Iowa hours; the extra pay is taxed at your marginal rates, not at a special penalty rate, even though the deduction line looks bigger.
Working across a state line from Iowa
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.
Remote and hybrid work complicates this further: most states tax income where the work is physically performed, so a Des Moines resident spending part of the year at a client site in Illinois may owe a nonresident return there. Keep a day-count log if you split time between states.
The rest of your Iowa tax bill
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.
Income tax is only one part of a state's take. Iowa recovers revenue through sales and property tax as well, which is why headline income tax rates alone are a poor guide to how far a salary really goes. Iowa fully exempts retirement income for filers 55 and older, including pensions and IRA distributions.
Iowa vs Illinois on the same salary
On a $75,000 salary, a single filer keeps about $58,826 a year in Iowa against roughly $57,880 in Illinois — a difference of $946, or $79 a month.
Effective combined rates are 21.6% in Iowa and 22.8% in Illinois. Set that gap against living costs: index 90 here versus 93 there, with property tax at 1.5% and 2.07% respectively.
Iowa income tax brackets 2026 (single filer)
| Taxable income | Rate |
|---|---|
| $0 and up | 3.80% |