PPayBreakdown Calculators

Iowa Overtime Calculator 2026

Calculate your Iowa take-home pay including overtime. Overtime pays 1.5× your regular rate for all hours over 40 per week under federal FLSA rules.

Iowa Income Tax Overview

Iowa reformed its income tax system and now has a flat rate of 3.8% for 2026, down significantly from what was previously a multi-bracket system with rates up to 8.53%. Iowa's flat rate mirrors the federal standard deduction ($16,100 for single filers), making the standard deduction one of the most generous in the country at the state level. Iowa is continuing to phase down its rate — the long-term target is 3.9% (which it already hit ahead of schedule). Iowa has no local city income taxes. Compared to neighboring Wisconsin (up to 7.65%) and Illinois (4.95% flat), Iowa's 3.8% flat rate is meaningfully more favorable. Minnesota to the north charges up to 9.85%, making Iowa a relatively attractive option for workers near the border.

Frequently Asked Questions

What is the Iowa income tax rate for 2026? ▾
Iowa has a flat income tax rate of 3.8% on all taxable income for 2026.
Has Iowa recently reduced its income tax? ▾
Yes significantly. Iowa cut from a progressive system with a top rate of 8.53% to a flat 3.8%, one of the larger state income tax reductions in recent years.
Do Iowa cities charge local income tax? ▾
No. No city in Iowa imposes a local income tax on wages.
How does Iowa compare to neighboring states? ▾
Iowa's 3.8% flat rate is lower than Illinois (4.95%), Wisconsin (up to 7.65%), and Minnesota (up to 9.85%). It is higher than no-income-tax neighbors like South Dakota.

Other Calculators