TAXES 20-08, Iowa State Income Tax Withholding
Published: April 1, 2020
Effective: Pay Period 04, 2020
Summary
The income tax withholding formula for the State of Iowa includes the following changes:
- The standard deduction amount for employees claiming zero or one withholding allowances will increase from $1,690 to $1,880.
- The standard deduction amount for employees claiming two or more withholding allowances will increase from $4,160 to $4,630.
- The tax withholding rates table has changed.
No action on the part of the employee or the personnel office is necessary.
Tax Formula
State Abbreviation: |
IA |
State Tax Withholding State Code: |
19 |
Acceptable Exemption Form: |
IA-W4 |
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:
|
Additional Information: |
None |
Withholding Formula (Effective Pay Period 04, 2020)
- Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
- Subtract the nontaxable biweekly Federal Employees Health Benefits Plan payment(s) (includes dental and vision insurance program and Flexible Spending Account — health care and dependent care deductions) from the amount computed in step 1.
- Add the taxable biweekly fringe benefits (e.g., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
- Multiply the adjusted gross biweekly wages by the number of pay dates in the tax year to obtain the gross annual wages.
- Multiply the biweekly Federal income tax withholding by the number of pay dates in the tax year 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 exemption
$1,880
2 or more exemption
$4,630
- 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 Tax Withholding Should Be:
Over $0 but not over $1,480
0.33%
Over $1,480 but not over $2,959
$4.88 plus 0.67% of excess over $1,480
Over $2,959 but not over $5,918
$14.79 plus 2.25% of excess over $2,959
Over $5,918 but not over $13,316
$81.37 plus 4.14% of excess over $5,918
Over $13,316 but not over $22,193
$387.65 plus 5.63% of excess over $13,316
Over $22,193 but not over $29,590
$887.43 plus 5.96% of excess over $22,193
Over $29,590 but not over $44,385
$1,328.29 plus 6.25% of excess over $29,590
Over $44,385 but not over $66,578
$2,252.98 plus 7.44% of excess over $44,385
Over $66,578
$3,904.14 plus 8.53% of excess over $66,578
- Determine the exemption allowance by applying the following guideline and subtract this amount from the results of step 7 to compute the annual Iowa tax withholding.
Multiply the number of Allowances by $40
- Divide the annual Iowa tax withholding calculated in step 8 by the number of pay dates in the tax year to obtain the biweekly Iowa tax withholding.
Resources
To view the updated tax formula, go to the page from the drop-down menu on the National Finance Center (NFC) Home page. Select the tab and select from the menu to launch the tax map. Select the desired State from the map provided for the formula.
Inquiries
For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at or via the customer service portal.