Iowa State Income Tax 2026
Iowa applies a flat 3.8% income tax in 2026, down from a graduated structure with a top rate of 8.53% in 2022. Senate File 2442 (2024) accelerated the earlier HF 2317 transition, reaching the flat 3.8% rate in 2025 and holding it for 2026. Iowa now uses the federal standard deduction. Local school district surtaxes (typically 0-17% of state tax owed) still apply.
Flat 3.8%: 8.53% top rate now gone
Iowa's transition from a graduated income tax (top 8.53%) to a flat rate reached its endpoint in 2025 and holds for 2026. The path: 2022 graduated 0.33% to 8.53% → 2023 graduated 0.33% to 6.0% → 2024 graduated 4.4% to 5.7% → 2025 flat 3.8% → 2026 flat 3.8%. Senate File 2442 (2024) set the 3.8% flat rate, accelerating HF 2317's original 3.9%-by-2026 plan.
Iowa 2026 Quick Facts
| Tax type | Flat 3.8% (2026) |
| Previous top rate (2022) | 8.53% |
| Effective rate at $75K | ~3.0% after standard deduction |
| Standard deduction (single) | $16,100 (federal) |
| Standard deduction (MFJ) | $32,200 (federal) |
| Local income tax | School district surtax (% of state tax) |
| Reciprocity agreements | Illinois (limited) |
| Social Security taxed | No |
| Retirement income age 55+ | Most exempt |
| 2026 changes | No rate change (flat 3.8% held from 2025) |
2026 Iowa Income Tax Brackets
| Rate | Single Filer Income | Married Filing Jointly |
|---|---|---|
| 3.8% | All taxable income | All taxable income |
Sources: Iowa Department of Revenue 2026 rate announcement (tax.iowa.gov), Iowa SF 2442 (2024) and HF 2317 (2022), IRS Rev. Proc. 2025-32 (2026 federal standard deduction), Tax Foundation 2026 State Tax Guide. Data verified July 2026.
Iowa Effective Rate Calculator
Standard deduction: $16,100 applied before tax calculation.
Effective Rate
2.98%
State Tax Due
$2,238
Marginal Bracket
3.8%
State income tax only. Does not include federal income tax, Social Security, Medicare, or local income tax. Calculations are estimates for educational purposes. Verify with a licensed CPA before filing.
What You Actually Pay: Worked Examples
$50,000 income
$75,000 income
$100,000 income
$250,000 income
Single filer, standard deduction. Does not include federal tax, Social Security, or Medicare.
Local Income Tax in Iowa
Iowa does not have city or county income taxes. However, Iowa has a unique school district surtax that applies in most of the state's school districts.
The surtax is calculated as a percentage of your Iowa state income tax owed, not a percentage of income. Surtax rates range from 0% (no surtax) in some districts up to roughly 17% in others. For a taxpayer in a district with a 5% surtax owing $1,000 in state tax, the surtax would be $50.
Major metro areas like Des Moines, Cedar Rapids, Davenport and Iowa City all fall within school districts that levy this surtax at moderate rates. Check your specific district's rate with the Iowa Department of Revenue.
See the full local income tax guide for all US cities →Iowa Filing Requirements
Residents: File Iowa Form 1040 if gross income exceeds the filing threshold. Residents are taxed on all income.
Part-year residents: File Form 1040 marked as part-year for the portion of the year you lived in Iowa.
Non-residents: File Form 1040 marked as non-resident for Iowa-source income.
Reciprocity: Iowa has a limited reciprocity arrangement with Illinois for certain border-area workers; most multi-state filers need to file in both states with credits.
Filing deadline: April 30 (Iowa allows an extra two weeks beyond the federal April 15 deadline). Extensions available.
Retirement Income Treatment in Iowa
| Social Security benefits | Exempt | Iowa does not tax Social Security |
| Traditional pension income | Exempt | Exempt for residents 55 and older |
| Government pension | Exempt | Exempt for residents 55+ (state, federal, local) |
| Military pension | Exempt | Fully exempt from Iowa state income tax |
| 401(k) and IRA withdrawals | Exempt | Exempt for residents 55 and older |
| Roth IRA withdrawals | Exempt | Qualified distributions are tax-free |
Iowa is becoming one of the more retirement-friendly states. Combined with the 3.8% flat rate and the age-55 exemption for most retirement income, Iowa is significantly more attractive for retirees than its historical reputation. See the full 50-state retirement income scorecard.
Iowa Income Tax: FAQs
What is Iowa's income tax rate for 2026?
What was Iowa's previous tax structure?
Does Iowa have a local income tax?
Does Iowa tax Social Security?
What is Iowa's standard deduction?
Sources: Iowa Department of Revenue 2026 rate announcement (tax.iowa.gov), Iowa SF 2442 (2024) and HF 2317 (2022), IRS Rev. Proc. 2025-32 (2026 federal standard deduction), Tax Foundation 2026 State Tax Guide. Data verified July 2026. Not tax advice. Always confirm current figures with the Iowa Department of Revenue or a licensed CPA or Enrolled Agent before filing.