Verified AscenPay tables
Iowa payroll tax rules, 2026
These are the figures AscenPay uses to run Iowa payroll.
State income tax withholding
Flat rate: 3.8% of taxable wages.
Single
| Yearly taxable wages over | Rate |
|---|---|
| $0 | 4.4% |
| $6,210 | 4.82% |
| $31,050 | 5.7% |
Married
| Yearly taxable wages over | Rate |
|---|---|
| $0 | 4.4% |
| $12,420 | 4.82% |
| $62,100 | 5.7% |
- Standard deduction: $13,000 single, $26,000 married.
State unemployment (employer)
- Taxable wage limit: $39,500 per employee per year.
- New-employer rate used: 1%. Your state assigns your actual rate.
Federal taxes (every state)
- Social Security 6.2% employee + 6.2% employer, up to $184,500 of wages.
- Medicare 1.45% employee + 1.45% employer; extra 0.9% employee tax over $200,000.
- Federal unemployment (FUTA) 0.6% on the first $7,000 per employee.