Tax rate used in calculating Iowa state tax for year 2018
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State Abbreviation:
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IA
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State Tax Withholding
State Code:
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19
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Acceptable Exemption
Form:
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IA-W4 or W-4
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Basis For Withholding:
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State Exemptions
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Acceptable Exemption
Data:
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0 / Number of Allowances
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TSP Deferred:
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Yes
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Special Coding:
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Determine the Total Number
Of Allowances Claimed field as follows:
First
Position - Enter 0 (zero).
Second
and Third Positions - Enter the number of allowances claimed.
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Additional Information:
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None
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Withholding Formula (Iowa Effective 2018)
- Subtract the biweekly Thrift Savings Plan contribution from the gross biweekly wages.
- Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes flexible spending account - health care and dependent care deductions) from the amount computed in step 1.
- Add the taxable biweekly fringe benefits (taxable life insurance, etc.) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
- Multiply the adjusted gross biweekly wages times 26 to obtain the gross annual wages.
- Multiply the biweekly Federal income tax withholding by 26 to obtain the annual Federal income tax withholding and subtract this amount from the gross annual wages computed in step 4.
- Determine the standard deduction by applying the following guideline and subtract this amount from the result of step 5 to compute the taxable income.
If the Number of
Allowances Claimed Is: |
The Standard
Deduction Is: |
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0 or 1
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$ 1,650
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2 or more
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4,060
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- Apply the taxable income computed in step 6 to the following table to determine the Iowa tax withholding.
Tax Withholding Table |
If the Amount of
Taxable Income Is: |
The Amount of Iowa
Tax Withholding Should Be: |
Over:
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But Not
Over: |
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|
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Of Excess
Over: |
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$ 0
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$ 1,300
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$ 0.00
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plus
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0.36%
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$ 0
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1,300
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2,600
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4.68
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plus
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0.72%
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1,300
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2,600
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5,200
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14.04
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plus
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2.43%
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2,600
|
|
5,200
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11,700
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77.22
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plus
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4.50%
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5,200
|
|
11,700
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19,500
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369.72
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plus
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6.12%
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11,700
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|
19,500
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26,000
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847.08
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plus
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6.48%
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19,500
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26,000
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39,000
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1,268.28
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plus
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6.80%
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26,000
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39,000
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58,500
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2,152.28
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plus
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7.92%
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39,000
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58,500
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and over
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3,696.68
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plus
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8.98%
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58,500
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- Determine the exemption allowance by applying the following guideline and subtract this amount from the result of step 7 to compute the annual Iowa tax withholding.
Exemption Allowance = $40 x Number of Exemptions
- Divide the annual Iowa tax withholding by 26 and round to the nearest dollar to obtain the biweekly Iowa tax withholding.
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in house payroll tax solution for Iowa small businesses here.
How to Calculate Iowa State Income Tax Withholdings Automatically
How to Create After the Fact Paychecks and Generate the Paystubs
PRODUCT
ezPaycheck: Pay Employees On Time