Iowa Income Tax Rate
3.80% flat rate
Everyone pays 3.80% of taxable income, regardless of income level or filing status.
Key Facts That Affect Your Take-Home Pay
- Iowa taxes income at a single flat 3.8% rate after the standard deduction ($16,100 for single filers, $32,200 for married couples filing jointly), the same rate for every income level and filing status.
- Because the 3.8% rate applies only after the standard deduction, Iowa's effective rates stay low and rise slowly: a $50,000 earner pays $1,288 (2.6% of salary), a $100,000 earner pays $3,188 (3.2%), and a $200,000 earner pays $6,988 (3.5%).
- Iowa does not levy city or county income tax, so paycheck calculations remain uniform everywhere. All Iowa residents face the same flat 3.8% state rate.
What People Get Wrong
“Iowa has one of the highest income tax rates in the Midwest.”
Iowa's income tax is a flat 3.8%, applied only to income above the standard deduction ($16,100 single, $32,200 married). Someone earning $100,000 pays $3,188 (3.2% of salary), less than the $4,950 the same earner pays in Illinois (4.95% flat).
“Iowa's tax gets more complicated as I earn more.”
Iowa uses one flat 3.8% rate for every income level, so a raise is taxed at the same rate as the rest of your pay. The only thing that changes your effective rate is the standard deduction, which matters less as income rises: a $75,000 earner pays 3.0% of salary and a $200,000 earner pays 3.5%.
“No local taxes means Iowa is cheaper than other states.”
While Iowa avoids local income tax complications, the 3.8% income tax combined with sales taxes (6%-7% in most areas) and property taxes can create a significant tax burden. A high earner in Iowa pays 3.8% on income above the standard deduction, while a high earner in a flat-tax state like Pennsylvania pays 3.07% flat (though PA may have local EIT). Factor in all taxes when comparing Iowa to other states.
