Iowa Paycheck Calculator

Iowa Paycheck Calculator

With a progressive income tax system, Iowa, also known as the Hawkeye State, utilizes four tax brackets. The income tax rates in the state range from 4.40% to 6.00%. Furthermore, over 300 school districts in Iowa impose individual income surtaxes.

How Does the Iowa Paycheck Tax Calculator Work?

When embarking on a fresh job, it is customary to fill out a W-4 form, which provides your employer with the necessary information to determine the appropriate tax withholdings from your paychecks. Regardless of the frequency at which you receive your salary, your employers are obliged to deduct federal income taxes from your wages. These funds are subsequently forwarded to the IRS, who will allocate them towards your annual income tax liabilities.

Various elements come into play when it comes to your withholdings. Your marital and filing status hold significant importance in this regard. Whether you are single or married, filing jointly or separately, or even filing as the head of the household, all of these factors will have an impact on the income tax bracket you fall into.

Important Note: The Stubcreator provides a paycheck calculator designed to provide essential guidance. This should not be relied upon to calculate exact taxes, payroll, or other financial data. You should seek a professional accountant regarding any particular requirement.

Iowa Payroll Tax Calculator

In the state of Iowa, if your annual gross pay is $65,000.00, your net pay, also referred to as take-home pay, will be $50,571 after deducting taxes at a rate of 22.20%, which amounts to $14,428.81. These deductions include $6,040.50 or 9.29% for federal income tax, $3,415.81 or 5.26% for state income tax, $4,030.00 or 6.20% for social security tax, and $942.50 or 1.45% for Medicare.

Taxable Base Wage

Taxable Base Wage for Iowa are as follows:

SUTA Rates

The 2024 rates range from 0% to 7.0% on the first $38,200 in wages paid to each employee in a calendar year. The taxable wage base will increase to $39,500 in 2025. If you’re a new employer (congratulations!), you pay a flat rate of 1%. New construction employers pay 7.0%.

FUTA Rates

Employers who participate in a state unemployment insurance program that satisfies federal requirements may be eligible for a maximum credit of 5.4 percent against this tax. Currently, the first $7,000.00 in employee wages is subject to a 6.0 percent FUTA tax.

FICA Rates

In Iowa, the FICA tax rates for 2024 are as follows:

For Employees and Employers:

• Social Security Tax: 6.2%
• Medicare Tax: 1.45%

Additional Medicare Taxes

• Employees: 1.45%

Other Taxes

Additionally, the average combined state and local sales tax rate in Iowa is 6.94 percent, with a state sales tax rate of 6.00 percent. The effective property tax rate on owner-occupied dwelling value in Iowa is 1.40 percent. There is an inheritance tax in Iowa.

• In Indiana, the ETT Rate for 2024 is 0.0% to 7.0%.
• In Indiana, the SDI Withholding Rate for 2024 is 5.70%.

Iowa Payroll Tax Withholding:

When federal income tax is withheld, Iowa income tax must often be withheld as well. The recipient of the payment may elect to have Iowa withholding deducted in cases where no federal income tax is withheld. A five percent withholding rate may be applied to nonwage income.

Iowa Paystub Generator

Below mentioned are the details of Iowa:

• Form IA W-4 is the initial step in the Iowa payroll tax process. Employees are required to provide necessary information to help determine the correct withholding amount.
• Personal Income Tax Rate is 4.40%-6.0%.
• In the event of life-changing circumstances like marriage, divorce, the birth or adoption of a child, and other similar events, employees must ensure that they update their Form IA W-4 to reflect any potential tax implications.