Iowa payroll tax rates
Unemployment tax, income tax withholding, minimum wage and paid leave in Iowa, each with its effective date and the agency page it comes from.
Unemployment insurance
Checked on October 5, 2026.
Income tax withholding
| Item | Value | Effective | Source |
|---|---|---|---|
| Agency | Iowa Department of Revenue (opens in a new tab) | Iowa Department of Revenue, Iowa Withholding Tax Information (opens in a new tab) | |
| Withholding rates | 3.8% flat | Iowa Department of Revenue, Iowa Withholding Formula, effective January 1, 2026 (PDF) (opens in a new tab) | |
| Supplemental wages | 3.8% optional flat rate | Iowa Department of Revenue, Iowa Withholding Tax Information (opens in a new tab) | |
| Reciprocity | Illinois: Form 44-016, Employee's Statement of Nonresidence in Iowa | Iowa Department of Revenue, Iowa-Illinois Reciprocal Agreement (opens in a new tab) | |
| Employee's withholding form | IA W-4 (44-019) | Iowa Department of Revenue, Iowa Withholding Tax Information (opens in a new tab) | |
| Local income taxes | No | Iowa Department of Revenue, Iowa Tax/Fee Descriptions and Rates (opens in a new tab) |
Checked on October 5, 2026.
Minimum wage
| Item | Value | Effective | Source |
|---|---|---|---|
| Minimum wage | $7.25 | Iowa Department of Inspections, Appeals, and Licensing (DIAL), Wage and Child Labor Unit: Wage (opens in a new tab) | |
| Tipped employees, cash wage | $4.35 | Iowa Department of Inspections, Appeals, and Licensing (DIAL), Wage and Child Labor Unit: Wage (opens in a new tab) | |
| Rises with inflation | No | Iowa Code 2026, §91D.1 (PDF) (opens in a new tab) | |
| Local rates | No local minimum wages: cities may not set a minimum or living wage above state or federal law. | Iowa Code 2026, §364.3(12) (PDF) (opens in a new tab) |
Checked on October 5, 2026.
Paid family and medical leave
| Item | Value | Effective | Source |
|---|---|---|---|
| State program | None | Iowa Department of Inspections, Appeals, and Licensing (DIAL), Wage and Child Labor Unit: Wage (opens in a new tab) |
Checked on October 5, 2026.
Workers' compensation
| Item | Value | Effective | Source |
|---|---|---|---|
| Required | From the first employeeDomestic and casual workers are covered once they earn $1,500 from the employer in 12 months; farm employers once cash payroll reached $2,500 in the prior year | Iowa DIAL, Workers' Compensation Division: Compliance (opens in a new tab) | |
| State fund | None; private insurers | Iowa DIAL, Workers' Compensation Division: Compliance (opens in a new tab) |
Checked on October 5, 2026.
What a paycheck costs the employer in Iowa
Employer taxes and contributions on one employee's pay in Iowa, per check and for the year, at the rates a new employer pays. State rates are the ones on this page; federal rates are the ones on the federal payroll tax rates page.
- Employer taxes and contributions per check
- $213.47
- First check of the year
- Cost per check
- $2,521.16
- Pay included, first check
- Cost per year
- $64,836.00
- Pay included
Later checks cost less once pay passes a wage base: the year's last check costs $2,484.23, pay included.
| Item | Rate | First check | Per year | Source |
|---|---|---|---|---|
| Social Security, employer share | 6.2% on the first $184,500 | $143.08 | $3,720.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| Medicare, employer share | 1.45% of all pay | $33.46 | $870.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| Federal unemployment (FUTA) | 0.6% on the first $7,000After the full 5.4% credit. Employers in a credit reduction state pay more. | $13.85None after check 4 | $42.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| Iowa unemployment | 1% on the first $20,4001.0%: the rank 4 rate of the table in effect (Table D, 0.3% for 2026), but not less than 1.0%; construction 5.4% (rank 9) | $23.08None after check 9 | $204.00 | IWD, Information on Rate Computations for Private Employers 2026, 70-5015 (10/2025) (PDF) (opens in a new tab) |
| Employer taxes and contributions | $213.47 | $4,836.00 | ||
| Pay | $2,307.69 | $60,000.00 | ||
| Pay plus employer costs | $2,521.16 | $64,836.00 |
Checked on October 5, 2026. Shows one employee's pay for a full calendar year, every check at the rates in force on October 13, 2026, with all pay subject to these taxes, the new employer rates and the full employer shares the law sets. An employer may choose to pay an employee's share too. Benefits and other costs are not included.
Common questions
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Payroll taxes calculated, deposited and filed in every state
Worklio HCM calculates, deposits and files payroll taxes in every state and locality, city, county and school district taxes included, and rates and rules update without you noticing. We help open state accounts when you hire somewhere new. Payroll and HCM for companies with 50 to 50,000+ employees.
Rates in other states
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Sources
The agency page or document behind each figure, as checked.
- Iowa Workforce Development, Unemployment Insurance (employers) (opens in a new tab)
- IWD, Information on Rate Computations for Private Employers 2026, 70-5015 (10/2025) (PDF) (opens in a new tab)
- Iowa Code 2026, §96.1A(36), "Taxable wages" (PDF) (opens in a new tab)
- Iowa Code 2026, §96.7 (PDF) (opens in a new tab)
- US DOL, FUTA Credit Reductions (opens in a new tab)
- Iowa Department of Revenue, Iowa Withholding Tax Information (opens in a new tab)
- Iowa Department of Revenue, Iowa Withholding Formula, effective January 1, 2026 (PDF) (opens in a new tab)
- Iowa Department of Revenue, Iowa-Illinois Reciprocal Agreement (opens in a new tab)
- Iowa Department of Revenue, Iowa Tax/Fee Descriptions and Rates (opens in a new tab)
- Iowa Department of Inspections, Appeals, and Licensing (DIAL), Wage and Child Labor Unit: Wage (opens in a new tab)
- Iowa Code 2026, §91D.1 (PDF) (opens in a new tab)
- Iowa Code 2026, §364.3(12) (PDF) (opens in a new tab)
- Iowa DIAL, Workers' Compensation Division: Compliance (opens in a new tab)
- IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab)
General information, not legal or tax advice. Rules change; confirm current requirements with the relevant agency or your advisor. You remain responsible for your employment taxes.