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How to Calculate 2025 Iowa State Income Tax by Using State Income Tax Table

1. Find your income exemptions

2. Find your pretax deductions, including 401K, flexible account contributions ...

3. Find your gross income

4. Check the 2025 Iowa state tax rate and the rules to calculate state income tax

5. Calculate your state income tax step by step

6. If you want to simplify payroll tax calculations, you can download ezPaycheck payroll software, which can calculate federal tax, state tax, Medicare tax, Social Security Tax and other taxes for you automatically. You can try it free for 30 days, with no obligation and no credt card needed.

Learn more about the in house payroll tax solution for Iowa small businesses here.
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  IOWA STATE TAX TABLES

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2025 Iowa State Tax Witholding Table
2024 Iowa State Tax Witholding Table
2023 Iowa State Tax Witholding Table
2022 Iowa State Tax Witholding Table
2021 Iowa State Tax Witholding Table
( 2020   2019   2018   2017   2016   )

Tax rate used in calculating Iowa state tax for year 2025

State Abbreviation:

IA

State Tax Withholding State Code:

19

Acceptable Exemption Form:

IA-W4 or W-4

Basis For Withholding:

State Exemptions

Acceptable Exemption Data:

0 / Number of Allowances

TSP Deferred:

Yes

Special Coding:

Determine the Total Number Of Allowances Claimed field as follows:
First Position - Enter 0 (zero).
Second and Third Positions - Enter the number of allowances claimed.

Additional Information:

None


Withholding Formula (Iowa Effective 2025)
  1. Subtract the biweekly Thrift Savings Plan contribution from the gross biweekly wages.

  2. Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes flexible spending account - health care and dependent care deductions) from the amount computed in step 1.

  3. Add the taxable biweekly fringe benefits (taxable life insurance, etc.) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.

  4. Multiply the adjusted gross biweekly wages times 26 to obtain the gross annual wages.

  5. Multiply the biweekly Federal income tax withholding by 26 to obtain the annual Federal income tax withholding and subtract this amount from the gross annual wages computed in step 4.

  6. Determine the standard deduction by applying the following guideline and subtract this amount from the result of step 5 to compute the taxable income.

    7. If the Number of
    Allowances Claimed Is:

    The Standard
    Deduction Is:

    0 or 1
    $ 14,600
    2 or more
       29,200

  7. Apply the taxable income computed in step 6 to the following table to determine the Iowa tax withholding.

    8. Tax Withholding Table

    If the Amount of
    Taxable Income Is:

    The Amount of Iowa
    Tax Withholding Should Be:


    Over:

    But Not
    Over:

    Of Excess
    Over:

    $        0
    $     4,896
    $        0.00
    plus
    0%
    $        0
        4,896
           24,480
             215.42
    plus
    4.82%
        4,896
        24,480
           and over
           1159.37
    plus
    5.70%
        24,480

  8. Determine the exemption allowance by applying the following guideline and subtract this amount from the result of step 7 to compute the annual Iowa tax withholding.

    9. Exemption Allowance = $40 x Number of Exemptions

  9. Divide the annual Iowa tax withholding by 26 and round to the nearest dollar to obtain the biweekly Iowa tax withholding.
 

More Payroll Information for Iowa Small Business

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