Updated October 8, 2026. Quick answer: Iowa has a flat income tax rate of 3.8 percent, and the Department of Revenue says all levels of taxable individual income are subject to it in 2026. The 2026 IA W-4 prints standard deduction amounts of $16,100 for a single filer, $24,150 for head of household and $32,200 for married filing jointly.
The 2026 Iowa rate
| Taxable income | Rate |
|---|---|
| All taxable income, every filing status | 3.8% |
The Department’s announcement says “Iowa law provides for a flat tax rate of 3.8 percent”. It adds that “all levels of taxable individual income will be subject to this rate”. The 2026 withholding formula says to “Multiply T1 by the withholding tax rate 3.80% or 0.038”.
The standard deduction on the 2026 IA W-4
| Filing status | 2026 amount |
|---|---|
| Single or married filing separate | $16,100 |
| Head of household | $24,150 |
| Married filing jointly | $32,200 |
The form tells a single filer or a married filer filing separately to “If single or married filing separate returns, enter $16,100”. The form calls them the federal standard deduction amounts. They come from a withholding worksheet, not from the return instructions.
A worked example
As a computed example (an illustration, not a source figure), take $100,000 of Iowa taxable income. At the flat 3.8% the tax is $3,800 (computed). Taxable income is the figure after the standard deduction and any exemptions.
What this page does not say
The rate is taken from the Department’s announcement, not from Iowa Code chapter 422, which was not read. Iowa’s retirement-income exclusions are covered on the Iowa retirement taxes page.
Common mistakes
- Looking for graduated brackets. Iowa has one rate for all taxable income.
- Using the withholding formula as the final tax. It is a payroll calculation.
- Using the pre-flat-tax brackets from older articles.
Related: how Iowa taxes retirement income, whether Iowa taxes pensions, how Iowa taxes capital gains, and the federal 2026 tax brackets.
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Answer againSources
- Iowa Department of Revenue, press release: IDR Announces 2026 Individual Income Tax and Interest Rates (2025-10-21): https://revenue.iowa.gov/press-release/2025-10-21/idr-announces-2026-individual-income-tax-and-interest-rates
- Iowa Department of Revenue, Iowa Individual Income Tax Withholding Formula Effective January 1, 2026: https://revenue.iowa.gov/media/53/download?inline=
- Iowa Department of Revenue, 2026 IA W-4 Employee Withholding Allowance Certificate: https://revenue.iowa.gov/media/4324/download?inline=
- Iowa Department of Revenue (where later updates appear; no figure on this page comes from it): https://revenue.iowa.gov/
Sources: the primary documents linked above, read on October 8, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the plan administrator or the agency itself is the right place to confirm anything consequential.