Iowa

Q: Employer Obligations (What Your Employer Must Withhold & Remit)

Register for withholding and unemployment from day 1. Unemployment applies to the first $38,200 of wages.

Welcome home!

You live here. Iowa taxes all your income regardless of where you earn it. Use IA 130 to claim credit for taxes paid to other states so you don't get double-taxed.

Work State Tax Rate

Flat 3.8%

Withholding Starts

Day 1

Law Last Updated

Jan 1, 2025

Employee Obligations (Which Returns YOU Must File)

This is your home state. File Iowa Form IA 1040 reporting all income. Claim IA 130 for taxes paid to other states.

Employer Obligations (What Your Employer Must Withhold & Remit)

City & Local Income Taxes (Extra Filings Beyond the State Return)

None for nonresidents. Iowa school district taxes are residence-based only.

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Employee/Individual Tax Source: https://tax.iowa.gov/iowa-withholding-tax-information

Employer/Withholding Source: https://tax.iowa.gov/iowa-withholding-tax-information

Row last reviewed: May 7, 2026Home state credit form: IA 130

This is general information, not tax or legal advice. Laws change frequently. Always consult a licensed CPA or tax attorney for your specific situation. All information researched as of March 21, 2026.