Iowa Issues New 2026 Income Tax Withholding Tables

tax.iowa.gov

Published November 3rd, 2025

Detected March 17th, 2026

Summary

The Iowa Department of Revenue has issued updated income tax withholding formulas and tables for 2026. These changes are necessary to account for inflation and federal tax law modifications enacted by the 'One Big Beautiful Bill Act'. Employers are advised to review and implement these new tables for the upcoming tax year.

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What changed

The Iowa Department of Revenue has released updated income tax withholding formulas and tables for 2026. These revisions are driven by inflation adjustments and conformity with federal tax law changes stemming from the 'One Big Beautiful Bill Act' enacted on July 4, 2025. The updated tables are designed to reflect the generally decreased individual income tax liability resulting from these federal changes.

Employers in Iowa must review and implement these new withholding formulas and tables for tax year 2026. The Iowa W-4 form has also been revised. Failure to use the correct withholding rates can lead to underpayment penalties. Employers can access the updated tables and formulas on the Iowa Department of Revenue website.

What to do next

Review and implement the updated Iowa 2026 income tax withholding formulas and tables.
Ensure the IA W-4 form is updated for tax year 2026.

Source document (simplified)

IDR Issues New Income Withholding Tax Tables for 2026

Monday, November 3, 2025
Press Release

Des Moines, Iowa – The Iowa Department of Revenue is issuing updated income tax withholding formulas and tables for 2026. The Department updates withholding formulas and tables when necessary to account for inflation and for changes in individual income tax liability resulting from changes in tax law.

New for 2026

The Iowa withholding formula and the IA W-4 have been revised for tax year 2026 to accommodate changes to individual income tax required under the federal law known as the One Big Beautiful Bill Act, which was enacted on July 4, 2025.

The Iowa Code is automatically conformed to the Internal Revenue Code of the United States for tax purposes. This means that, with certain important exceptions, Iowa law emulates the tax law changes made at the federal level. The federal tax law changes enacted in 2025 generally decreased individual income tax liability beginning in 2026. The 2026 Iowa withholding tables accommodate this reduction. Employers can view the Iowa 2026 withholding formulas and tables online.

Employers can view the Iowa 2026 withholding formulas and tables online.