How Much Are Bonuses Taxed in Iowa?

Iowa supplemental withholding rate: 3.80%, plus 22% federal and FICA.

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Filing status

Best net bonus (flat method)

$6,655

from $10,000 gross bonus

Flat method (22%)

Better

$6,655

Federal (22%)$2,200
State$380
Social Security$620
Medicare$145
Total tax$3,345

33.5% effective rate

Aggregate method

$6,655

Tax on salary + bonus$19,603
Tax on salary alone$16,258
Incremental tax on bonus$3,345

33.5% effective rate

Difference: $0 more with the flat method.

Withholding estimates based on 2026 rates. Actual tax determined when you file.

Iowa bonus tax examples

Bonus Federal State FICA Total tax Net bonus
$5,000 $1,100 $190 $383 $1,673 $3,328
$10,000 $2,200 $380 $765 $3,345 $6,655
$25,000 $5,500 $950 $1,913 $8,363 $16,638
$50,000 $11,000 $1,900 $3,825 $16,725 $33,275

Flat method, single filer, $75k base salary.

FAQ

What is the bonus tax rate in Iowa?

Iowa withholds 3.80% on supplemental income like bonuses, in addition to the 22% federal withholding and FICA taxes.

How much will I take home from a $10,000 bonus in Iowa?

Using the flat method with a $75,000 salary: net bonus of approximately $6,655 (33.5% total withholding rate).

Which withholding method should I choose?

It depends on your salary and bonus. The flat method withholds 22% federal; the aggregate method uses your actual brackets. Use the calculator above to compare both.

Is this my final tax on the bonus?

No. This is withholding — your actual tax is determined when you file your return. If too much was withheld, you get a refund.

How much are bonuses taxed in Iowa?

In Iowa, bonuses are taxed at a 3.80% state supplemental rate plus 22% federal flat rate. You'll also owe 6.2% Social Security (up to the $184,500 wage cap) and 1.45% Medicare. On a $10,000 bonus, you'd take home approximately $6,655.

What is the Iowa bonus tax rate for 2026?

The Iowa supplemental withholding rate for 2026 is 3.80%. This is the state portion — your employer also withholds 22% federal tax, 6.2% Social Security, and 1.45% Medicare from bonus payments.

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Withholding estimates only. Consult a tax professional for advice.