Iowa Income Tax 2026
Iowa has a flat 3.80% income tax for 2026. The standard deduction is $16,100 (single) / $32,200 (married filing jointly). Iowa applies a single flat individual income tax rate of 3.8% for tax year 2026, confirmed by the Iowa Department of Revenue 2026 rate announcement (Senate File 2442, May 2024). The flat rate applies to all levels of taxable income; the prior graduated brackets and 2024 phase-down (flat 4.82% in 2024 -> flat 3.8% in 2025/2026) are obsolete. Standard deduction: Iowa now couples to the FEDERAL standard deduction. For tax year 2026 the federal amounts (OBBBA, IRS C-CPI inflation-adjusted) are $16,100 single / $32,200 MFJ ($24,150 head of household) - NOT the 2024 $14,600/$29,200 nor the 2025 base $15,750/$31,500. Retirement income is fully exempt for taxpayers age 55+ (and disabled/surviving spouses) - pensions, IRA/401(k) distributions, annuities. Social Security benefits are 100% exempt. No local/city individual income tax on wages (former school district surtax repealed). Iowa eliminated its inheritance/estate tax effective 2025. Personal exemption is delivered as a credit ($40 single, $80 MFJ, $40 per dependent), not a deduction.
Iowa tax brackets (single, 2026)
| Taxable income | Rate |
|---|---|
| $0+ | 3.80% |
Tax on common incomes in Iowa (2026, single)
| Income | State tax | Take-home |
|---|---|---|
| $20,000 | $148 | $17,932 |
| $25,000 | $338 | $21,859 |
| $30,000 | $528 | $25,757 |
| $35,000 | $718 | $29,584 |
| $40,000 | $908 | $33,412 |
| $45,000 | $1,098 | $37,239 |
| $50,000 | $1,288 | $41,067 |
| $55,000 | $1,478 | $44,894 |
| $60,000 | $1,668 | $48,722 |
| $65,000 | $1,858 | $52,549 |
2026 figures. Source: Iowa Department of Revenue + Tax Foundation. Not tax advice.