Lowa Salary Paycheck Calculator
Curious about your take-home pay in the Hawkeye State? Our Iowa Paycheck Calculator helps you estimate your net income with ease. Whether you’re a Des Moines professional or a Cedar Rapids entrepreneur, this tool helps you understand how taxes and deductions impact your earnings, giving you a clearer picture of your finances in Iowa.
Gross To Net Calculator
The amount that remains after these deductions are considered your net pay.
Iowa Taxes: What You Need to Know
Understanding Iowa’s tax system is crucial for managing your finances effectively. The Hawkeye State imposes various taxes that affect your paycheck and overall income.
Let’s break down the components:
Federal, State, and Local Tax Withholding
Iowa residents are subjected to federal and state income taxes. While there’s no local income tax in Iowa, your employer will withhold both federal and state taxes from your paycheck. The amount withheld depends on your income level and filing status.
FICA and State Insurance Taxes
Social Security and Medicare taxes, collectively known as FICA taxes, are deducted from your paycheck. In 2024, the Social Security tax rate is 6.2% on wages up to $168,600, while the Medicare tax rate is 1.45% on all wages.
Iowa also requires contributions to state unemployment insurance, which is paid by employers.
Pre-Tax Deductions
Many Iowans can reduce their taxable income through pre-tax deductions. Common examples include:
- Medical insurance premiums
- 401(k) retirement contributions
- Health Savings Account (HSA) contributions
- Flexible Spending Account (FSA) contributions
These deductions are taken out of your paycheck before taxes are calculated, potentially lowering your overall tax burden.
| Tax Type | Rate | Notes |
| State Income Tax | 4.40% – 5.70% | Graduated rates based on income and filing status |
| Social Security Tax | 6.2% | On wages up to $168,600 |
| Medicare Tax | 1.45% | On all wages |
| State Sales Tax | 6% | Consistent across the state |
| Fuel Tax | Varies | Based on fuel type and usage |
Iowa’s tax system is designed to be fair and progressive, with lower rates for lower-income earners. The state is also transitioning to a flat tax rate of 3.9% by 2026, which simplifies the tax structures for all residents.
Median Household Income in Iowa
The median household income of Iowa provides insight into the economic well-being of its residents. The average income is $92,053, and the median income is $70,571.
| Year | Median Household Income |
| 2024 | $70,571 |
| 2022 | $70,571 |
| 2021 | $68,816 |
| 2019 | $66,054 |
| 2018 | $68,718 |
| 2017 | $63,467 |
| 2016 | $59,094 |
| 2015 | $60,855 |
| 2014 | $57,810 |
| 2013 | $60,156 |
A Study by the American Community Survey listed the following regarding the conditions of Women in Iowa:
- As of 2022, they were approximately 1.59 million females in Iowa, representing about 49.8% of the state’s population.
- Women are projected to make up 49.2% of Iowa’s population by 2060.
- About 19.8% of families with children under 18 are headed by single mothers, compared to 9.8% headed by single fathers.
- The median income of female householders with no spouse present was $44,122 in 2022, compared to $59,117 for male householders with no spouse present.
- Women make up 54.4% of enrollment in Iowa’s universities and colleges.
- 34.2% of women aged 25 and over in Iowa hold a bachelor’s degree or higher, a significant increase from 7.5% in 1970.
- Women comprise 40% of the workforce in the education services, healthcare, and social assistance industries, the largest sector for female employment in Iowa.
These statistics clearly underline the contributions of women to Iowa’s economy, along with the gender disparities in income and certain industries.
Iowa Tax Brackets 2024
In 2024, Iowa is continuing its journey towards significant tax reform, bringing relief to taxpayers through inflation-adjusted tax brackets. This means that while wages may rise, you won’t be paying more taxes. Iowa Code Sections 422.4 and 422.5 ensure that tax brackets adjust accordingly.
Here is all the information you will need:
2024 Iowa Income Tax Brackets for Married Taxpayers Filing Jointly
| Taxable Income | Tax Rate |
| $0 – $12,420 | 4.40% on income over $0 |
| $12,420 – $62,100 | 4.82% on income over $12,420 |
| Over $62,100 | 5.70% on income over $62,100 |
2024 Iowa Income Tax Brackets for All Other Taxpayers
| Taxable Income | Tax Rate |
| $0 – $6,210 | 4.40% on income over $0 |
| $6,210 – $31,050 | 4.82% on income over $6,210 |
| Over $31,050 | 5.70% on income over $31,050 |
Iowa’s Future Tax Plans
In 2025, Iowa’s tax brackets are expected to reduce to just two, with a top rate of 4.82%. Then, by 2026, Iowa will adopt a flat tax rate of 3.9% for all income levels. This shift is a part of the state’s long-term goal to make tax filing simpler and more predictable for everyone.
Iowa Department of Revenue Interest Rate
Starting January 1, 2024, taxpayers with overdue payments will be charged the following interest rates by the Iowa Department of Revenue:
- Annual rate: 10.0%
- Monthly rate: 0.8%
- Daily rate: 0.027322%
These rates are determined based on the average monthly prime rate over the previous twelve months, rounded to the nearest whole percent, with two additional percentage points added.
Key Points on Iowa’s Corporate Income Tax Changes
In addition to individual tax reforms, Iowa has also made changes to corporate income taxes:
- In 2024, Iowa’s top marginal corporate income tax rate will decrease from 8.4% to 7.1%.
- Over time, Iowa plans to continue lowering this rate until it reaches a flat rate of 5.5%.
- This reduction is part of Iowa’s ongoing efforts to enhance tax competitiveness and reduce the overall corporate tax burden.
By 2026, Iowa taxpayers – both individuals and businesses – will benefit from a simplified, lower tax structure designed to keep more money in their pockets and boost the state’s economy.
Wrapping It Up
In conclusion, understanding Iowa’s tax system, income distribution, and demographic trends is crucial for making informed financial decisions. To get a clear picture of how these elements impact your paycheck, we encourage you to try our Iowa Paycheck Calculator.
Frequently Asked Questions
No, Iowa doesn’t impose local income taxes, so the Iowa Paycheck Calculator focuses only on state and federal taxes. If you’re working in a different state, you’ll need to check whether that state has local tax obligations.
Yes, Iowa allows for a number of state-specific deductions. For example, contributions to Iowa’s College Savings Iowa plan and the Iowa ABLE plan are deductible from your taxable income. Additionally, there are deductions for federal tax payments, pension exclusions, and certain capital gains.
The Iowa Paycheck Calculator is regularly updated to reflect the latest state and federal tax laws, including any adjustments to income tax brackets or tax credits for 2024.
Iowa’s state tax system operates separately from federal taxes, with its own set of rates and deductions. While federal tax deductions reduce your overall taxable income, Iowa also offers specific deductions such as pension exclusions and a deduction for federal income tax paid, making state taxes a bit more manageable.
If you have multiple jobs or additional sources of income, you can manually enter the income for each job in the Iowa Paycheck Calculator. Make sure to factor in all earnings to get the most accurate calculation of your take-home pay. It’s also a good idea to review how additional income impacts your tax bracket.
The Iowa Paycheck Calculator allows you to input pre-tax deductions such as health insurance premiums, retirement contributions, or other benefit-related deductions. These pre-tax contributions reduce your taxable income, so be sure to enter them to get an accurate reflection of your take-home pay. Check out the specific state calculator for more detailed options and calculations.
To adjust the calculator for filing jointly, select the option for “Married Filing Jointly” in the Iowa Paycheck Calculator. This will adjust the tax brackets and applicable deductions to reflect joint income, providing an accurate estimate for households with dual incomes.
