Iowa Income Tax Guide 2025
Iowa Tax Brackets 2025
Iowa uses a progressive tax system with rates varying based on income level and filing status. Here's what you need to know:
Sample Take-Home Pay Calculations for Iowa
Here's what different salary levels look like after taxes in Iowa(assuming single filing status and standard deductions):
| Gross Salary | Net Take-Home | Effective Tax Rate | Monthly Net |
|---|---|---|---|
| $40,000 | $32,261 | 19.35% | $2,688 |
| $50,000 | $39,726 | 20.55% | $3,311 |
| $60,000 | $47,191 | 21.35% | $3,933 |
| $75,000 | $57,064 | 23.91% | $4,755 |
| $100,000 | $73,158 | 26.84% | $6,097 |
| $125,000 | $89,048 | 28.76% | $7,421 |
| $150,000 | $104,636 | 30.24% | $8,720 |
| $200,000 | $137,758 | 31.12% | $11,480 |
Living in Iowa: Tax Considerations
When considering employment or relocation to Iowa, it's important to factor in the total tax burden, including:
- State income tax rates
- Local taxes (if applicable)
- Sales tax rates
- Property tax rates
- Cost of living index
Maximizing Your Take-Home Pay in Iowa
- Contribute to tax-deferred retirement accounts (401k, IRA)
- Utilize Health Savings Accounts (HSA) if eligible
- Take advantage of Flexible Spending Accounts (FSA)
- Understand available state tax deductions and credits
- Consider the timing of income and deductions
Iowa vs Other States
Compare your take-home pay in Iowa with other states: