Iowa Freelancer Tax Rates 2026
Iowa converted from a multi-bracket system to a flat 3.8% rate and continues reducing toward even lower rates. Iowa allows deductions for federal taxes paid, which lowers the effective state burden.
| Tax Type | Rate | Notes |
|---|---|---|
| Self-Employment Tax | 15.3% | Federal — Social Security + Medicare |
| Federal Income Tax | 10%–37% | Progressive, standard deduction applied |
| Iowa State Tax | 3.8% | Flat rate — among lowest Midwestern rates |
Example: Iowa Freelancer Earning $75,000 (2026)
| Tax Component | Amount |
|---|---|
| Self-Employment Tax (15.3%) | $10,597 |
| Federal Income Tax | $6,949 |
| Iowa State Tax (3.8%) | $2,079 |
| Total Tax | $19,625 |
| Take-Home Pay | $55,375 |
| Effective Total Rate | 26.2% |
Iowa Freelancer FAQ
What is the Iowa income tax rate for freelancers in 2026?
Iowa has a flat 3.8% state income tax, down from a much higher graduated structure in prior years. Iowa is continuing to reduce rates in future years. Des Moines and Iowa City have no city income taxes on freelancers.
How much tax does an Iowa freelancer at $75,000 pay?
Approximately $10,597 SE + $6,949 federal + $2,079 IA state = $19,625 total. Effective rate ~26.2%. Take-home ~$55,375.