11/03/2025 | Press release | Distributed by Public on 11/03/2025 08:22
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.
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.
Employers can contact the Department at 515-281-3114 or 800-367-3388.