Income Tax for Iowa (2026)

How This Calculator Works in Iowa

This calculator applies Iowa's 2026 tax brackets and rates to estimate your state income tax liability. Enter your income and filing status to see your marginal rate, effective rate, and estimated tax owed.

Iowa Overview

Iowa is undergoing a dramatic income tax reform, phasing from a progressive system that once topped at 8.53% to a flat rate of 3.9% by 2026. The state also recently began exempting all retirement income for those 55+ and still allows a deduction for federal taxes paid during the transition. Iowa's federal tax deduction — shared with only five other states — will be eliminated once the flat rate takes effect.

How Iowa Compares

Iowa's top income tax rate of 5.7% compares to Minnesota at 9.85% and Wisconsin at 7.65%. The rate differences can meaningfully impact take-home pay for workers near state borders.

Iowa's income tax rate of 5.7% compares to a national average of approximately 5.04%. This is above the national average.

Tips for Iowa Residents

• 1Iowa is phasing to a flat income tax rate of 3.9% by 2026, replacing a progressive system that previously had rates up to 8.53%.
• 2For tax year 2024, Iowa uses 4 brackets with a top rate of 5.7%, still declining annually toward the 3.9% flat target.
• 3Iowa is one of six states that allows a deduction for federal income taxes paid — claim this on your Iowa return to reduce taxable income.
• 4Iowa fully exempts Social Security benefits and retirement income for taxpayers 55 and older, making it increasingly retirement-friendly.
• 5Iowa also exempts all military retirement pay from state income tax.

Frequently Asked Questions