Sioux City, IA Paycheck Calculator 2026

How paychecks work in Iowa

Sioux City, Iowa residents follow the same statewide payroll rules as everyone else in Iowa, with the additional local considerations noted below. Every paycheck issued in Iowa has three federal withholdings — federal income tax, Social Security, and Medicare — followed by Iowa's own withholding rules and any local wage tax that applies where you work. Iowa has a flat 3.80% state income tax. Iowa's economy is anchored by agriculture, biofuels, insurance in Des Moines, and precision manufacturing.

This page explains, step by step, how gross wages become take-home pay in Iowa: what the federal government takes, what the state of Iowa takes, which cities and localities add their own withholding, and how minimum wage, overtime, and pay-frequency rules interact with common benefits like 401(k) contributions and pre-tax health premiums.

Federal taxes on Iowa paychecks

Regardless of where you live, the IRS applies the same federal income tax brackets, standard deduction, and FICA contributions. For 2026, the federal tax brackets range from 10% on the first ~$12,400 of taxable income (single) up to 37% on income above roughly $626,000. Most workers land in the 12%, 22%, or 24% brackets after subtracting the $16,100 single (or $32,200 married-jointly) standard deduction.

On top of federal income tax, every Iowa employee pays FICA: 6.2% Social Security up to a $184,500 wage base, plus 1.45% Medicare on all wages, with an additional 0.9% Medicare surtax on wages over $200,000 (single). Employers match Social Security and Medicare dollar-for-dollar; you only see your half on the stub.

Iowa state income tax

Iowa taxes wage income at a flat 3.80%. The state standard deduction is $15,000 for single filers and $30,000 for married filing jointly.

Because Iowa uses a flat rate, every dollar of taxable wage income is taxed at the same rate. This makes Iowa state withholding simpler to estimate than in states with graduated brackets.

Local wage taxes in Iowa

Some school districts impose an income surtax of up to 20% of state tax liability.

FICA: Social Security and Medicare

Social Security is the biggest single deduction most middle-income Iowa workers see besides federal income tax. It funds retirement, disability, and survivor benefits, and applies at 6.2% until you have earned $184,500 for the year (2026). If you earn more than that, Social Security stops for the remainder of the year — a highly visible bump in take-home pay for high earners late in the calendar year.

Medicare has no cap. All wages are hit at 1.45%, and an extra 0.9% Additional Medicare Tax applies to any wages above $200,000 (single) or $250,000 (married filing jointly). Employers begin withholding the additional 0.9% the pay period you cross $200,000, whether or not you'll actually owe it after year-end.

Overtime rules for Iowa employees

Follows federal FLSA: 1.5x for hours over 40/week.

Overtime pay itself is taxed exactly the same way as regular wages — there is no special overtime tax rate. But because a paycheck with lots of overtime looks temporarily much larger, employer withholding formulas may withhold a higher percentage than your true annual rate. That withholding is reconciled at tax time via your federal 1040 and Iowa state return, so if you consistently work overtime you may want to review your W-4 to avoid over-withholding.

Minimum wage in Iowa

The current minimum wage in Iowa is $7.25 per hour. Iowa follows the federal minimum wage of $7.25/hr. At 40 hours per week and 52 weeks per year, that equates to roughly $15,080 in gross annual wages before overtime.

Pay frequency rules

At least monthly; most employers pay bi-weekly. Most private-sector employees in Iowa are paid either weekly or bi-weekly, with salaried professionals often on a semi-monthly schedule. Choosing the right pay-frequency assumption is important when using the calculator above, because the same annual salary produces different per-paycheck amounts depending on whether it's split over 26 (bi-weekly) or 24 (semi-monthly) periods.

Reciprocal states

Iowa has reciprocal income tax agreements with Illinois. If you live in one of those states but work in Iowa (or vice versa), you generally only pay state income tax to your home state — you fill out a certificate of non-residence with your employer to stop withholding for the work state.

Example take-home pay in Iowa

The table below shows estimated federal, FICA, and Iowa state tax for a single filer at several common salary levels, using 2026 rules and the standard deduction. Bi-weekly amounts assume 26 paychecks per year.

Common Iowa payroll deductions to watch

• 401(k) contributions — pre-tax dollars reduce federal (and, in Iowa, state) income tax. The 2026 employee limit is $24,500 ($32,000 if age 50+).
• Pre-tax health premiums — Section 125 cafeteria plan contributions reduce federal, state, and FICA-taxable wages.
• HSA contributions — for high-deductible health plans, HSA money is pre-tax at both federal and state levels in Iowa.
• Garnishments, child support, and Roth 401(k) — these post-tax deductions do not reduce taxable wages but still cut take-home pay.
• Iowa moved to a 3.8% flat tax in 2026 after a multi-year phase-in.
• Iowa is the top ethanol-producing state, driving significant rural manufacturing payroll.

Key industries and pay levels in Iowa

Iowa's top industries include Agriculture, Insurance, Biofuels, Manufacturing, and Renewable Energy. Major employers like John Deere, Principal Financial Group, Wells Fargo, and Rockwell Collins (Collins Aerospace) anchor a large share of state payrolls, and pay levels tend to track industry mix — states heavy on technology, finance, and aerospace typically show higher median household income than states dominated by agriculture, tourism, or retail.