Tax rate used in calculating Iowa state tax for year 2019State Abbreviation: | IA | State Tax Withholding State Code: | 19 | Acceptable Exemption Form: | IA-W4 or W-4 | Basis For Withholding: | State Exemptions | Acceptable Exemption Data: | 0 / Number of Allowances | TSP Deferred: | Yes | Special Coding: | 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. | Additional Information: | None |
Withholding Formula (Iowa Effective 2019)- 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: | | 0 or 1 | $ 1,690 | | 2 or more | 4,160 |
- 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:
| But Not Over: | | | | Of Excess Over: | | $ 0 | $ 1,333 | $ 0.00 | plus | 0.33% | $ 0 | | 1,333 | 2,666 | 4.40 | plus | 0.67% | 1,333 | | 2,666 | 5,331 | 13.33 | plus | 2.25% | 2,666 | | 5,331 | 11,995 | 73.29 | plus | 4.14% | 5,331 | | 11,995 | 19,992 | 349.18 | plus | 5.63% | 11,995 | | 19,992 | 26,656 | 799.41 | plus | 5.96% | 19,992 | | 26,656 | 39,984 | 1,196.58 | plus | 6.25% | 26,656 | | 39,984 | 59,976 | 2,029.58 | plus | 7.44% | 39,984 | | 59,976 | and over | 3,516.98 | plus | 8.53% | 59,976 |
- 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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