Iowa Bonus Tax Calculator (2026)
Iowa withholds 3.8% state income tax on bonuses, on top of the federal 22% and 7.65% FICA.
Iowa rules for bonuses
Flat rate when federal uses 22%. Published rates: 3.8% for bonus, overtime, commission or other special payment when federal is withheld at a flat rate.
- Paid with regular wages: combine and use tables/formula
- IAC 701-307.2(1)(c) still says 6%; IDR's current guidance (3.8%) controls
If federal income tax is withheld on a flat rate basis, Iowa income tax is required to be withheld at the highest rate applicable to individuals (3.8%).
Local taxes: None withheld (school district surtax is settled on the return)
Take-home bonus by amount
| Bonus | Federal (22%) | FICA | State | Take-home |
|---|---|---|---|---|
| $1,000 | $220 | $77 | $38 | $666 |
| $2,500 | $550 | $191 | $95 | $1,664 |
| $5,000 | $1,100 | $383 | $190 | $3,328 |
| $10,000 | $2,200 | $765 | $380 | $6,655 |
| $20,000 | $4,400 | $1,530 | $760 | $13,310 |
| $50,000 | $11,000 | $3,825 | $1,900 | $33,275 |
Sources
Frequently asked questions
What is the bonus tax rate in Iowa?
Iowa withholds 3.8% on bonuses, on top of the federal 22% and 7.65% FICA.
How much of a $10,000 bonus do I keep in Iowa?
About $6,655 for a single filer earning $85,000: $2,200 federal, $765 Social Security and Medicare and $380 state.
Will I get some of the bonus tax back?
Possibly. The 22% federal rate is only withholding. At tax time your bonus is taxed at your bracket (22% at this salary), and Iowa's flat supplemental rate can also differ from your actual state rate.