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Iowa Bonus Paycheck Calculator

A bonus paid in Iowa is withheld at the flat 22% federal supplemental rate in 2026 (37% on amounts above $1 million), plus FICA of 7.65% and a flat 3.8% Iowa income tax. That is roughly 33.4% withheld up front: withholding, not your final tax bill.

How are bonuses taxed in Iowa?

In Iowa, bonus withholding is typically 22% federal (the supplemental rate) plus 3.8% Iowa income tax plus 7.65% FICA: about 33.4% up front. Withholding isn't your final tax: at filing time a bonus is ordinary income, so any over-withholding comes back as a refund. Against the 6 states Iowa borders, the same a $10,000 bonus is worth $6,655 here: South Dakota keeps $380 more ($7,035), Nebraska leaves $75 less ($6,580), Missouri leaves $90 less ($6,565), Illinois leaves $115 less ($6,540), Wisconsin leaves $150 less ($6,505) and Minnesota leaves $300 less ($6,355). South Dakota is the only border worth crossing for the tax alone.

Calculate your exact bonus take-home pay

Your bonus take-home

$3,328

from $5,000 bonusFor a $5,000 bonus · Iowa · single

Take-home 67%Taxes 33%
Bonus amount$5,000
Federal tax−$1,100
State tax−$190
Social Security−$310
Medicare−$73
Net bonus$3,328

Estimate based on 2026 federal and Iowa tax rules updated Oct 2026 How we calculate

Your details

Taxation method

Most common: a flat 22% federal rate is withheld on the bonus.

More options Base salary

What a bonus is actually worth in Iowa

On top of a $75,000 salary in Iowa, here is what each extra dollar survives federal tax, Iowa income tax and FICA in 2026:

BonusGrossIowa taxYou keepShare kept
$5,000 bonus$5,000$190$3,32866.5%
$10,000 bonus$10,000$380$6,65566.5%
$25,000 bonus$25,000$950$16,63866.5%

Iowa takes about 3.8% of that money on top of the 22% federal marginal rate and 7.65% FICA.

How Iowa ranks on bonuses

Across all 50 states and DC, Iowa ranks 18th for what a $10,000 bonus leaves in 2026. That is $90 more than the median state ($6,565), and $638 more than California, where the same a $10,000 bonus leaves $6,017.

The best outcome anywhere is $7,035 in Alaska and the other states with no wage income tax, $380 more than Iowa keeps.

Iowa bonuses against the states next door

Crossing a state line changes what the same bonus is worth without changing what you are paid. Here is a $10,000 bonus in Iowa against the states it borders:

StateState income taxYou keepvs Iowa
Iowa$380$6,655—
Illinois$495$6,540$115 less
Minnesota$680$6,355$300 less
Missouri$470$6,565$90 less
Nebraska$455$6,580$75 less
South DakotaNone$7,035$380 more
Wisconsin$530$6,505$150 less

How Iowa bonus withholding works

Short answer: your employer withholds a flat 22% for federal income tax (the supplemental rate), plus 7.65% for Social Security and Medicare, plus Iowa's flat 3.8% income tax: about 33.4% of a Iowa bonus withheld up front. Bonuses aren't actually taxed at a higher rate, though: at tax time they're ordinary income, and any over-withholding comes back in your refund. Here's how each piece works.

  • Federal supplemental rate: Most employers withhold federal income tax from bonuses at a flat 22%, $2,200 on a $10,000 bonus, or 37% above $1 million a year, regardless of your regular bracket.
  • Iowa flat tax: Iowa taxes bonuses like all other wages at its flat 3.8% rate: there's no separate state bonus rate. Local income taxes in some Iowa cities or counties are not included.
  • FICA taxes still apply: Social Security (6.2% up to the annual wage base) and Medicare (1.45%, plus 0.9% for high earners) come out of a bonus like any wage: $765 on $10,000.
  • Over-withholding is common: The flat 22% federal rate is often higher than your actual effective rate, and the difference comes back as a refund. In Iowa the whole $10,000 nets $6,655 once state tax and FICA are in.

Your actual bonus tax depends on your total annual income, not the bonus alone: these figures assume a $75,000 Iowa salary. Enter your own numbers above for an estimate that fits your situation.

Frequently Asked Questions

Typically about 33.4%: a flat 22% federal supplemental withholding, 3.8% Iowa income tax, and 7.65% FICA. Your actual tax owed depends on your full-year income and may be lower: the difference comes back as a refund when you file.

The IRS requires employers to withhold federal income tax from supplemental wages (including bonuses) at a flat 22% rate for amounts up to $1 million, rising to 37% above that. Your employer may alternatively add the bonus to your regular paycheck and withhold using the aggregate method. Worked through for Iowa: a $10,000 bonus keeps $6,655: 66.5% of it, after $380 of Iowa income tax.

It depends on your total annual income and tax bracket. If the 22% flat withholding rate is higher than your actual effective rate on the bonus, you'll get the difference back as a refund; if you're in a higher bracket, you may owe more. On a $75,000 salary in Iowa, a bonus is taxed at about 22% federally plus 3.8% to Iowa, so the 22% flat rate is close to the mark at that income.

Yes: as regular income. Iowa taxes all wage income, including bonuses, at its flat 3.8% rate; there is no separate state bonus rate. Local income taxes in some Iowa cities or counties are not included.

Splitting a bonus across pay periods can reduce withholding if your employer uses the aggregate method, which annualizes your income, but it changes the timing, not the amount you ultimately owe. Where you live changes the amount: Iowa ranks 18 of 51 on what a $10,000 bonus leaves, against $6,565 in the median state and $6,017 in California.

Against the 6 states Iowa borders, the same a $10,000 bonus is worth $6,655 here: South Dakota keeps $380 more ($7,035), Nebraska leaves $75 less ($6,580), Missouri leaves $90 less ($6,565), Illinois leaves $115 less ($6,540), Wisconsin leaves $150 less ($6,505) and Minnesota leaves $300 less ($6,355). South Dakota is the only border worth crossing for the tax alone.

No. Iowa's 3.8% applies only to income above the standard deduction ($16,100 single, $32,200 married). Someone earning $100,000 pays $3,188 a year (3.2% of salary), while the same earner in a flat-tax state like Pennsylvania would pay $3,070 (3.07% flat, though PA may have local EIT).

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