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Iowa Income Tax Guide

Flat 3.8% rateIowa DOR confirms all levels of 2026 taxable individual income use 3.8%.
Federal taxable income starts the calculationIowa modifications can add to or subtract from the federal starting amount.
Alternate tax rules existLow-income exemptions and alternate computations are not inferred from the current inputs.
Official SourcesIowa 2026 rateIowa taxable incomeIA Schedule 1IRS
Iowa 2026 rateIowa taxable incomeIA Schedule 1IRS
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How Iowa taxes work

Federal taxable income is approximatedThe calculator subtracts its supported 2026 federal standard deduction before applying Iowa modifications and tax.
The 2026 rate is 3.8%One flat percentage is applied to the simplified Iowa taxable-income amount.
Iowa modifications can change the baseState and municipal bond interest, retirement treatment, 529 contributions, and other items may require Schedule 1 adjustments.
Alternate calculations are excludedLow-income exemption, alternate tax, and tax-reduction worksheets need facts beyond the current inputs.
This is a resident modelNonresident and part-year apportionment through IA 126 is outside the estimate.

Common Iowa tax questions

Is Iowa progressive in 2026?No. Iowa DOR states that all 2026 taxable individual income uses a flat 3.8% rate.
Does Iowa start from federal AGI?The current Iowa form structure starts with federal taxable income, then applies Iowa-specific modifications.
Are retirement exclusions included?No. Eligibility depends on age, income type, and other facts the calculator does not collect.
Is low-income tax reduction included?No. Those alternate worksheets must be reviewed separately.
Is a local Iowa wage tax added?No broad local individual wage tax is added automatically.
Is this an IA 1040?No. It is a planning estimate and does not reproduce all Iowa modifications or alternate calculations.