TaxWrenTaxes for Iowa freelancers in 2026
Single filers get a standard deduction of $16,100 ($32,200 married filing jointly) and a personal exemption credit of $40.
On $85,000 of 1099 profit, a single filer owes about $2,350 in Iowa income tax on top of $17,800 in federal taxes. That ranks 16th lowest of 51 (50 states and DC), $379 less than the median state.
Among its neighbors, South Dakota would tax the same income less, while Nebraska, Missouri, Wisconsin, Illinois and Minnesota would tax it more.
Iowa also has local (county or city) income taxes. They average 0.08% of adjusted gross income statewide (2023 IRS and Census data compiled by the Tax Foundation) and are not included in these estimates.
Iowa income tax brackets for 2026
| Rate | Single: taxable income over | Married jointly: over |
|---|---|---|
| 3.8% | $0 | $0 |
Iowa vs. neighboring states
Tax on $85,000 of 1099 profit for a single filer in 2026. The median across all 50 states and DC is $2,729 of state income tax.
| State | State tax | Total tax | Take-home |
|---|---|---|---|
| Iowa | $2,350 | $20,150 | $64,850 |
| Illinois | $3,765 | $21,565 | $63,435 |
| Minnesota | $3,848 | $21,648 | $63,352 |
| Missouri | $2,775 | $20,575 | $64,425 |
| Nebraska | $2,715 | $20,515 | $64,485 |
| South Dakota | $0 | $17,800 | $67,200 |
| Wisconsin | $2,806 | $20,606 | $64,394 |
How Iowa taxes changed
For 2026, Iowa raised the single standard deduction from $15,750 to $16,100. State tax on $85,000 of 1099 profit falls from $2,363 to $2,350 (−$13).
| 2025 | 2026 | |
|---|---|---|
| Top income tax rate | 3.8% | 3.8% |
| Standard deduction (single) | $15,750 | $16,100 |
| State tax on $85,000 of 1099 profit | $2,363 | $2,350 |
| Take-home on a $75,000 salary | $59,102 | $59,394 |
Each year uses that year's federal and Iowa rules, so the take-home row also reflects federal changes. Federal changes · All data updates
Sources: Iowa revenue department, Tax Foundation, State Individual Income Tax Rates and Brackets, IRS Rev. Proc. 2025-32. See our methodology.
Iowa 1099 tax FAQ
Does Iowa have a state income tax?
Iowa has a flat income tax of 3.8%.
How much should a freelancer in Iowa set aside for taxes?
A single filer with $85,000 of 1099 profit and no other income should set aside about 24% of every payment in 2026: $12,010 self-employment tax, $5,790 federal income tax and $2,350 Iowa income tax. Use the calculator for your own income, expenses and filing status.
What is the top Iowa income tax rate in 2026?
3.8%. Iowa has a flat income tax of 3.8%.
Do I need to make estimated tax payments to Iowa?
Generally yes, if you expect to owe state tax that is not covered by withholding. Iowa sets its own thresholds and due dates; check the Iowa revenue department's estimated payment rules.