Iowa State Income Tax Withholding Information

State 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

Additional Resources:

TAXES 06-27, Iowa State Income Tax Withholding

Withholding Formula (Effective Pay Period 13, 2006)

  1. Subtract the biweekly Thrift Savings Plan contribution from the gross biweekly wages.

  2. 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.

  3. Add the taxable biweekly fringe benefits (taxable life insurance, etc.) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.

  4. Multiply the adjusted gross biweekly wages times 26 to obtain the gross annual wages.

  5. 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.

  6. 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

    $Arrow Left1,650Arrow Right

    2 or more

    Arrow Left4,060Arrow Right
  7. 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

    $1,300

    $0.00

    plus

    0.36%

    $0

    1,300

    2,600

    4.68

    plus

    0.72%

    1,300

    2,600

    5,200

    14.04

    plus

    2.43%

    2,600

    5,200

    11,700

    77.22

    plus

    4.50%

    5,200

    11,700

    19,500

    369.72

    plus

    6.12%

    11,700

    19,500

    26,000

    847.08

    plus

    6.48%

    19,500

    26,000

    39,000

    1,268.28

    plus

    6.80%

    26,000

    39,000

    58,500

    2,152.28

    plus

    7.92%

    39,000

    58,500

    and over

    3,696.68

    plus

    8.98%

    58,500
  8. 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

    9. Exemption Allowance = $40 x Number of Exemptions

  9. Divide the annual Iowa tax withholding by 26 and round to the nearest dollar to obtain the biweekly Iowa tax withholding.