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Deduction Breakdown
Iowa State Income Tax Information
Iowa uses a progressive income tax system with nine tax brackets for individuals. The rates for tax year 2025 are:
| Taxable Income | Tax Rate |
|---|---|
| $0 – $1,743 | 0.33% |
| $1,744 – $3,486 | 0.67% |
| $3,487 – $6,972 | 2.25% |
| $6,973 – $15,687 | 4.14% |
| $15,688 – $26,145 | 5.63% |
| $26,146 – $39,217 | 5.96% |
| $39,218 – $58,826 | 6.25% |
| $58,827 – $88,239 | 6.53% |
| $88,240+ | 6.70% |
These brackets apply to single filers for tax year 2025. Iowa bases its income tax on federal taxable income, but offers specific state credits and deductions that can lower your liability.
Federal Income Tax
The calculator also includes federal income taxes, which are determined based on your filing status and taxable income after deductions. Federal tax brackets are adjusted annually for inflation and apply uniformly across all states.
FICA Taxes
- Social Security Tax: 6.2% of gross wages, up to the wage base limit ($168,600 for 2025).
- Medicare Tax: 1.45% on all gross wages, plus an additional 0.9% for income exceeding $200,000 (single) or $250,000 (married filing jointly).
Pre-Tax Deductions
Pre-tax deductions reduce your taxable income and can result in significant tax savings. Common deductions include:
- 401(k) Contributions: Up to $23,000 annually (or $30,500 if age 50+ in 2025).
- Health Insurance Premiums: Typically pre-tax if offered through your employer.
- Health Savings Account (HSA): Up to $4,150 for individuals and $8,300 for families in 2025.
- Flexible Spending Account (FSA): Healthcare FSA contributions up to $3,200 for 2025.
Iowa–Specific Deductions and Credits
Iowa provides several deductions and credits to reduce tax burdens:
- Tuition and Textbook Credit
- Iowa Earned Income Tax Credit (EITC) – Based on a percentage of the federal EITC
- Pension and Retirement Income Exclusion – Up to $6,000 ($12,000 for couples)
- Deduction for Federal Income Tax Paid
- Volunteer Firefighter and EMS Tax Credit
- Deduction for Health Insurance Premiums (if not itemized federally)
Disclaimer
This calculator gives an estimate based on current tax laws and standard deductions. Your actual paycheck may differ due to specific factors such as local tax withholdings, employer-specific deductions, or additional income. For tailored advice, consult with a licensed tax professional.
This information is current as of May 2025, and subject to change with updates to federal or Iowa state tax law.