Iowa Hourly Paycheck Calculator
Your hourly rate and hours in, your take-home pay out. Overtime is paid at 1.5× your rate; tips you report are taxed like wages.
| Per paycheck | Amount | Per year |
|---|---|---|
| Gross pay | $1,600.00 | $41,600.00 |
| Federal income tax · withheld | −$108.15 | −$2,812.00 |
| Social Security (6.2%) | −$99.20 | −$2,579.20 |
| Medicare (1.45%) | −$23.20 | −$603.20 |
| Iowa income tax · withheld | −$40.26 | −$1,046.76 |
| Take-home pay | $1,329.19 | $34,558.84 |
How the federal income tax was worked out
| Pay subject to income tax, for the year · $1,600.00 × 26 paychecks | $41,600.00 |
| Minus the IRS withholding allowance · Pub 15-T Worksheet 1A, line 1g | −$8,600.00 |
| Adjusted yearly wage | $33,000.00 |
| Tax from the IRS yearly table · standard table | $2,812.00 |
| Federal income tax per paycheck · divided by 26 | $108.15 |
IRS Publication 15-T (2026), Worksheet 1A — the percentage method payroll software uses for a Form W-4 from 2020 or later. Your employer's figure can differ by a few cents because of rounding.
How the Iowa income tax was worked out
| Pay subject to Iowa tax this paycheck · after pre-tax 401(k) and benefits | $1,600.00 |
| Minus Iowa deduction amount · other (including single) ($13,000 a year) | −$500.00 |
| Taxable pay this paycheck | $1,100.00 |
| Iowa tax before allowances · × 3.8% flat rate | $41.80 |
| Minus IA W-4 allowances · $40 ÷ 26 paychecks | −$1.54 |
| Iowa tax from the formula this paycheck | $40.26 |
| Iowa income tax this paycheck · 2026 withholding formula | $40.26 |
Hourly pay in Iowa
Iowa's minimum wage is $7.25 an hour, in effect since January 1, 2008. Tips can count for up to 40% of the minimum wage, so tipped workers must get at least $4.35 an hour in cash from their employer, with tips making up the rest.
Overtime. Iowa's minimum wage law does not set overtime rules, and the state's labor office sends overtime questions to the U.S. Department of Labor. Under federal law, most hourly workers get time-and-a-half for hours over 40 in a workweek.
Extra hours raise your Iowa tax. The deduction and allowances are fixed amounts per paycheck, so every extra dollar you earn is taxed at 3.8%.
Because hours change from week to week, your withholding changes too: a week with lots of overtime is withheld as if you earned that much every week, so more comes out. It usually evens out when you file your return.
What comes out of a Iowa paycheck
- Federal income tax withholding — worked out from your pay and your Form W-4, using the IRS tables for 2026.
- Social Security — 6.2% of your pay, up to $184,500 of pay in 2026. Above that, it stops for the rest of the year.
- Medicare — 1.45% of all your pay, plus 0.9% on pay above $200,000 in the year.
An Iowa paycheck has one state line:
- Iowa income tax: 3.8% of your pay after pre-tax 401(k) and health benefits and a deduction amount that depends on the filing status on your IA W-4. Your IA W-4 allowances then lower the tax a little more.
There is no employee deduction for unemployment insurance. Iowa Workforce Development says it is a tax paid entirely by employers, and that you do not pay any part of the cost.
Tips and overtime in 2026
New federal deductions apply for 2025 through 2028: up to $25,000 for qualified tips, and up to $12,500 ($25,000 for joint filers) for the extra "half" of time-and-a-half overtime. Both phase out above $150,000 of income ($300,000 joint).
These are deductions on your tax return. Your employer still takes Social Security and Medicare out of tips and overtime, and still withholds income tax unless you tell it otherwise. If you expect to claim them, you can put the expected amount in Step 4(b) of your W-4 (and in the Step 4(b) box above) so less income tax is withheld during the year.
Other Iowa calculators
Paycheck calculator · Hourly paycheck calculator · Salary paycheck calculator · What changed for 2026 · Hourly to salary · Salary to hourly
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Sources
- IRS Publication 15-T (2026), Federal Income Tax Withholding Methods — Worksheet 1A and the annual percentage-method tables
- IRS Publication 15 (2026), Employer's Tax Guide — Social Security and Medicare rates
- Social Security Administration — 2026 wage base of $184,500
- IRS — tips and overtime deductions
- Iowa Department of Revenue — Iowa Individual Income Tax Withholding Formula, Effective January 1, 2026 (released November 2025) — T1 = wages − deduction amount; T2 = T1 × 3.80%; T3 = T2 − allowance amount ÷ pay periods; T4 = T3 + additional; deduction amounts $13,000 / $19,500 / $26,000 a year; ten worked examples
- Iowa Department of Revenue — Iowa Withholding Tables Effective January 1, 2026 (released November 2025)
- Iowa Department of Revenue — 2026 IA W-4 Employee Withholding Allowance Certificate — filing status; line 1 $40 for yourself ($80 head of household), +$20 age 65 or blind; line 2 $40 per dependent; line 7 total allowances; line 8 additional amount; school district surtax advice
- Iowa Department of Revenue — IDR Announces 2026 Individual Income Tax and Interest Rates (October 21, 2025) — flat 3.8% on all levels of taxable income; Senate File 2442 (May 2024)
- Iowa Department of Revenue — IDR Issues New Income Withholding Tax Tables for 2026 (November 3, 2025) — formula and IA W-4 revised for 2026 federal law changes
- Iowa Administrative Code 701—307.3 — Withholding allowance certificates — an employee who fails to furnish a certificate is considered as claiming no withholding allowances
- Iowa Department of Revenue — IA 1040 expanded instructions, Line 19: School District Surtax / Emergency Medical Services Tax — surtax is a percentage of Iowa tax, based on the school district you live in on December 31, paid on the return
- Iowa Workforce Development — Unemployment Insurance Claimant Handbook 2026–2027 — "a tax paid entirely by employers"; "You do not pay any part of this cost."
- Iowa Code §91D.1 — Minimum wage — $7.25 as of January 1, 2008; tips may count for up to 40% of the minimum wage; $6.35 during the first 90 calendar days
- Iowa Code §91A.3 — Mode of payment — at least monthly, semimonthly or biweekly on regular paydays; payday no more than 12 days (excluding Sundays and legal holidays) after the end of the period
- Iowa Code §91A.4 — Payment on termination — all wages earned due no later than the next regular payday
- Iowa Department of Inspections, Appeals, and Licensing — Wage and Child Labor: Wages — wage claims: less than one year since wages were due, under $6,500, all work in Iowa; overtime questions go to the U.S. Department of Labor
- U.S. Department of Labor — Overtime pay — time and one-half after 40 hours in a workweek
Questions
How much Iowa tax comes out of my paycheck?
3.8% of your pay after pre-tax 401(k), health benefits and the deduction amount for your filing status, minus your IA W-4 allowance amount spread over your paychecks.
How much is taken out of a $1,000 paycheck in Iowa?
For a single filer paid every two weeks with nothing else on the W-4, a $1,000 paycheck has about $38.08 of federal income tax, $62.00 of Social Security and $14.50 of Medicare taken out, $17.46 of Iowa income tax, leaving $867.96. Enter your own details in the calculator for your exact figure.
What is $20 an hour after taxes in Iowa?
Working 40 hours a week and paid every two weeks, $20 an hour is $1,600.00 before tax and about $1,329.19 after tax per paycheck — $34,558.84 a year — for a single filer with a standard W-4.
What does my employer use if I never filled in an IA W-4?
Iowa's rules treat you as claiming no allowances, and the formula uses the $13,000 deduction amount. That means a little more tax comes out than with the usual $40 allowance for yourself.
Is the school district surtax taken out of my paycheck?
Not by the withholding formula. You pay it on your Iowa return. You can lower your IA W-4 allowances or ask for extra withholding to cover it.
Is unemployment insurance taken out of Iowa paychecks?
No. Iowa Workforce Development says employers pay the whole cost.