United States · State income tax
Iowa state income tax rate 2027.
Iowa’s flat rate from the official source, with the 2026 figures and a labelled projected 2027 column.
Short answer: Iowa taxes wages at a flat 3.8% for 2026 (a single bracket for single and joint filers). No different 2027 schedule is enacted yet, so the 2027 column carries the 2026 schedule forward and is labelled projected.
Estimate your tax
Result
Enter your Iowa taxable income and press Estimate.
The Iowa schedule
Iowa Code 422.5(1)(a) (2026 Code, legis.iowa.gov) imposes tax on entire taxable income 'at a rate of three and eight-tenths percent'; IDR's Oct 2025 release says all taxable income is taxed at the flat 3.8% in 2026. Flat rate, no brackets, no dollar edges.
Single filers
| Taxable income | Rate, 2026 | Rate, 2027 (projected) |
|---|---|---|
| All taxable income | 3.8% | 3.8% |
Joint filers
| Taxable income | Rate, 2026 | Rate, 2027 (projected) |
|---|---|---|
| All taxable income | 3.8% | 3.8% |
Deductions, exemptions and local tax
Iowa’s standard deduction, exemption and credit amounts are not stated here because they were not read from the Iowa tax agency’s own pages on November 9, 2026. Use the state’s current return instructions. None of them is modelled.
This page does not cover any Iowa school-district surtax or other local add-ons; check the Iowa Department of Revenue.
What changes in 2027 (projected)
422.5(1)(a) as published in the 2026 Code states a single 3.8% rate with no end date and no step-down or trigger, so 2027 stays 3.8% under current law (no different rate enacted). The 3.5%-from-2027 figure in Chapter 422 is the financial-institution franchise tax (422.63), not the individual rate.
The 2027 column above carries the 2026 schedule forward. That is a projection, not an enacted 2027 schedule, and it is labelled that way wherever it appears.
Worked example (2026 schedule)
A single filer with $80,000 of Iowa taxable income owes $3,040 under the 2026 schedule, an effective rate of 3.80% and a marginal rate of 3.8%. A joint filer with $150,000 of Iowa taxable income owes $5,700 under the 2026 schedule, an effective rate of 3.80% and a marginal rate of 3.8%. The 2027 projection for the same incomes is the same dollar amount ($3,040 and $5,700) because the 2026 schedule is carried forward.
Common mix-ups
- Iowa's rate drops to 3.5% in 2027. 3.5% for tax years from 2027 appears in Iowa Code 422.63 (financial institution franchise tax). 422.5(1)(a) for individuals is 3.8% with no scheduled change.
- Iowa still has graduated brackets (e.g. 4.4%/4.8%). Since SF 2442 (May 2024) Iowa has a single flat rate; 422.5A (the rate table) was repealed effective tax years from 2025.
- The 2026 rate is 3.9%. 3.9% was the rate scheduled under earlier law (HF 2317); SF 2442 set 3.8% for 2026 per IDR.
- Married couples have wider brackets. One flat rate applies to all taxable income, so single and joint schedules are identical.
Method
The tool applies each bracket rate only to the slice of income inside that bracket, adds the slices and divides by income for the effective rate; the marginal rate is the rate of the bracket that contains your income. The 2027 line uses the 2026 schedule and is shown as projected. Nothing you type is sent to our servers; the maths runs in your browser. For a full paycheck including federal and payroll taxes, use the paycheck calculator, and for comparing states see the state income tax calculator.
What this does not cover
- Deductions, exemptions and credits. Enter income after them.
- Head of household, part-year or nonresident returns, and income taxed at special rates.
- Local income taxes and surtaxes beyond the bracket schedule.
- Any 2027 law change that has not been enacted yet.
Figures read from the sources below on November 9, 2026. Last updated November 9, 2026.
Sources
- Iowa Code chapter 422 (2026) (422.5 rate text; 422.63 franchise rates) (retrieved November 9, 2026)
- IDR Announces 2026 Individual Income Tax and Interest Rates (2026 flat 3.8%) (retrieved November 9, 2026)
Frequently asked questions
What is the Iowa state income tax rate for 2027?
Iowa has not enacted a different 2027 schedule that this page could read, so the 2027 figures are projected by carrying forward the 2026 rate (3.8%).
What is the top Iowa income tax rate?
3.8% under the 2026 schedule. It applies to all taxable income; there is only one bracket.
How much Iowa income tax would I pay on $80,000?
A single filer with $80,000 of Iowa taxable income owes $3,040 under the 2026 schedule, an effective rate of 3.80% and a marginal rate of 3.8%. The estimator above runs your own figure.
Does this page include deductions or credits?
No. It applies the rate schedule to the taxable income you enter, so subtract your deductions and exemptions first. It does not model credits, local taxes or surtaxes.
Is the 2027 result a forecast?
It is a projection. It carries the 2026 schedule forward and is labelled projected wherever it appears. Iowa can change its rates or indexed brackets before the 2027 forms are issued.
Where does the information on this page come from?
Iowa sources read on November 9, 2026: Iowa Code chapter 422; IDR Announces 2026 Individual Income Tax and Interest Rates. The links in the Sources section go to the originals.
Is Iowa's income tax rate the same for everyone in 2026?
Yes. Iowa Code 422.5(1)(a) sets 3.8% on all taxable income regardless of filing status.
Will Iowa's rate fall again in 2027?
Not under the 2026 Code text read: 422.5 has no 2027 change. Only the bank franchise tax steps to 3.5%.
Not legal or tax advice
Rates change and this is an unofficial guide, not run by any state tax agency; any 2027 figure that is not enacted is a projection. Nothing you type is transmitted anywhere. Confirm with the Iowa tax agency or a tax professional before you file.