Iowa Payroll Withholding
Effective April 1, 2006

Annual Earnings Addon Rate
$0.00 $0.00 0.36%
$1,300.00 $4.68 0.72%
$2,600.00 $14.04 2.43%
$5,200.00 $77.22 4.50%
$11,700.00 $369.72 6.12%
$19,500.00 $847.08 6.48%
$26,000.00 $1,268.28 6.80%
$39,000.00 $2,152.28 7.92%
$58,500.00 $3,696.68 8.98%

Standard deduction:
0-1 allowances: $1,650.00
2+ allowances: $4,060.00

Tax credit per allowance: $40.00

Supplemental income: 6.00%

Calculation formula:
T1 = Gross wages - FIT withheld
T2 = T1 - standard deduction
T3 = Taxable income of T2
State income tax withheld = T3 - [Personal allowances x allowance credit]

Note(s):

  • All amounts are annual unless otherwise noted