Iowa Taxes, Wages and Living Costs (2026)

Iowa has a flat income tax rate of 3.8%, the 23rd lowest combined sales tax (6.94%) and the federal $7.25 minimum wage as of 2026.

State income tax
3.8%
Flat rate
Combined sales tax
6.94%
6.00% state + 0.94% avg. local
Minimum wage
$7.25
Federal floor applies
Property tax
1.33%
Effective rate on home value
Electricity
15.99¢/kWh
Residential average, July 2026

What It Adds Up To

$9,690 a year: that is roughly what a Iowa homeowner earning $75,000 pays in state income tax ($2,238), sales tax on $25,000 of purchases ($1,735), property tax on a $300,000 house ($3,990) and electricity at 900 kWh a month ($1,727).

Iowa Income Tax in 2026

Iowa uses a single flat rate. Single filers' standard deduction: $16,100. On $50,000 of wages, a single filer's Iowa tax works out to about $1,288 (2.6% of wages); on $100,000 it is about $3,188 (3.2%). Source: Tax Foundation, January 1, 2026.

RateSingle filersMarried filing jointly
3.8%over $0over $0

Take-Home Pay in Iowa

Estimated 2026 take-home pay for a single filer with no pre-tax deductions, using the federal brackets and $16,100 standard deduction, Social Security and Medicare, and Iowa's brackets above. Open the paycheck calculator set to Iowa to add a 401(k), change pay frequency or filing status.

SalaryFederal taxFICAState taxTake-home (year)Per biweekly check
$50,000$3,820$3,825$1,288$41,067$1,579
$75,000$7,670$5,738$2,238$59,354$2,283
$100,000$13,170$7,650$3,188$75,992$2,923

Sales Tax

The state rate is 6.00% and local governments add 0.94% on average, for a combined 6.94%, 23rd lowest of the 50 states and D.C. (median 7.00%). A $1,000 purchase carries about $69 in sales tax at the average combined rate. Source: Tax Foundation, July 1, 2026.

Minimum Wage

Iowa follows the federal minimum of $7.25 an hour (the Iowa rate equals the federal minimum), which is $15,080 a year for full-time work (2,080 hours). Source: U.S. Department of Labor, July 1, 2026.

Property Tax

Homeowners in Iowa paid property taxes equal to 1.33% of home value on average, the 9th highest effective rate (median state 0.79%). On a $300,000 home that is about $3,990 a year, or $332 a month in escrow. Source: Tax Foundation (Census ACS data), 2024 data.

Electricity Prices

Residential electricity averaged 15.99¢ per kWh in July 2026, the 24th lowest of the 50 states and D.C. (median 16.09¢). A household using 900 kWh a month would pay about $144 before fixed charges. Source: U.S. EIA, July 2026 data.

Iowa Compared with Its Neighbors

Iowa sits in the middle of its 6 neighbors on taxes, wages and power prices.

StateTop income taxSales taxMin. wageProperty taxElectricity
Iowa3.8%6.94%$7.251.33%15.99¢
Illinois4.95%8.98%$15.001.88%19.22¢
Minnesota9.85%8.14%$11.411.00%17.45¢
Missouri4.7%8.44%$15.000.89%16.09¢
Nebraska4.55%6.98%$15.001.44%13.78¢
South DakotaNone6.11%$11.851.00%15.37¢
Wisconsin7.65%5.72%$7.251.32%19.06¢

Iowa figures use statewide averages and skip credits, exemptions and local income taxes; check Iowa revenue and labor department sites before filing or hiring.

💰 Finance & Tax Calculators
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Iowa Income Tax Calculator
Iowa brackets, top rate 3.8%
IA rates
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Mortgage Calculator
Payment plus Iowa property tax at 1.33%
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Budget with 1.33% property tax
💰
Salary Converter
Hourly to annual; Iowa minimum $7.25
🧾
Federal Tax Estimator
Federal 2026 tax plus 3.8% top Iowa rate
🏖
Retirement Calculator
Plan around Iowa 3.8% top income tax
⚖ Legal Reference Calculators
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Iowa limit: $6,500
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Statute of Limitations
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Estimate Iowa workers' compensation benefits
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Alimony Estimator
Spousal support estimates for Iowa

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