{
  "$comment": "Iowa 2026: flat 3.8% on federal taxable income (+ Iowa modifications), $40 exemption credits; no employee payroll programmes.",
  "country": "us",
  "jurisdiction": "us-ia",
  "taxYear": "2026",
  "period": {
    "start": "2026-01-01",
    "end": "2026-12-31",
    "tz": "America/Chicago"
  },
  "status": "provisional",
  "engine": "us-payroll@1",
  "currency": "USD",
  "revision": 1,
  "params": {
    "incomeTax": {
      "kind": "brackets",
      "incomeBase": "federalTaxableIncome",
      "addBackFederal": {
        "tips": false,
        "overtime": false,
        "seniors": false
      },
      "brackets": {
        "single": [
          {
            "upTo": null,
            "rate": "0.038"
          }
        ],
        "mfj": [
          {
            "upTo": null,
            "rate": "0.038"
          }
        ],
        "mfs": [
          {
            "upTo": null,
            "rate": "0.038"
          }
        ],
        "hoh": [
          {
            "upTo": null,
            "rate": "0.038"
          }
        ]
      },
      "deductions": [],
      "credits": [
        {
          "type": "perPerson",
          "id": "exemption-credits",
          "label": "Personal and dependent exemption credits ($40 each)",
          "filer": {
            "single": "40",
            "mfj": "80",
            "mfs": "40",
            "hoh": "80"
          },
          "perDependent": "40"
        },
        {
          "type": "lowIncomeZero",
          "id": "low-income-exemption",
          "label": "Low-income exemption (income $9,000 or less; $13,500 joint/HoH)",
          "threshold": {
            "single": "9000",
            "mfj": "13500",
            "mfs": "9000",
            "hoh": "13500"
          },
          "perDependent": "0"
        }
      ]
    },
    "conformity": {
      "k401": true,
      "k403b": true,
      "k457": true,
      "hsa": true,
      "healthFsa": true,
      "dependentCareFsa": true,
      "section125": true
    },
    "programmes": []
  },
  "rounding": {
    "unit": "0.01",
    "mode": "halfUp",
    "stage": "perLine"
  },
  "knownCliffs": [
    {
      "id": "ia-low-income-exemption",
      "field": "params.incomeTax.credits",
      "description": "Tax is zero at income of $9,000 ($13,500 MFJ/HoH) or less and the full tax applies above; for under-65 filers this sits below the federal standard deduction so it does not bind."
    }
  ],
  "notModelled": [
    "Additional $20 credits for age 65+/blind; age-65 low-income thresholds ($24,000/$32,000)",
    "Alternate tax computation and single tax-reduction worksheet (not beneficial for under-65 wage earners at the federal standard deduction)",
    "Iowa EITC, child and dependent care, tuition and other credits",
    "School district income surtaxes (Iowa surtax/EMS levies)",
    "Federal itemized deductions (federal standard deduction assumed)"
  ],
  "sources": [
    {
      "field": "period",
      "url": "https://revenue.iowa.gov/media/2725/download",
      "title": "Iowa 2026 calendar tax year",
      "retrieved": "2026-10-07"
    },
    {
      "field": "rounding",
      "url": "https://revenue.iowa.gov/media/4435/download?inline=",
      "title": "IA 1040 instructions: whole-dollar rounding optional; MoneyOtter rounds the line half-up to the cent",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.kind",
      "url": "https://revenue.iowa.gov/media/2725/download",
      "title": "State personal income tax on wages computed by rate schedule — 2026: flat tax rate of 3.8%",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.incomeBase",
      "url": "https://revenue.iowa.gov/media/2725/download",
      "title": "2026 IA 1040ES: Iowa taxable income = federal taxable income (federal 1040 line 15) + Iowa modifications",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.addBackFederal",
      "url": "https://revenue.iowa.gov/media/4435/download?inline=",
      "title": "Expanded instructions: Schedule 1-A deductions (tips, overtime, seniors) remain in federal taxable income for Iowa taxable income; the senior deduction is added back only for low-income exemption/alternate tax tests",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.brackets",
      "url": "https://revenue.iowa.gov/media/2725/download",
      "title": "2026: flat tax rate of 3.8%",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.deductions",
      "url": "https://revenue.iowa.gov/media/4435/download?inline=",
      "title": "No Iowa deductions beyond federal taxable income for wage earners",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.credits",
      "url": "https://revenue.iowa.gov/media/4435/download?inline=",
      "title": "Exemption credits: $40 personal credit (2 for MFJ and head of household), $40 per dependent; low-income exemption: Iowa taxable income plus standard deduction <= $9,000 single / $13,500 MFJ, HoH (MFS: own <= $9,000 and combined <= $13,500)",
      "retrieved": "2026-10-07",
      "note": "The low-income test income (Iowa taxable income + standard deduction) equals AGI for a wage earner; it never binds below the federal standard deduction for under-65 filers but is kept for fidelity. 2026 amounts assumed unchanged ($40 credits are not indexed; 2026 IA 1040ES confirms 3.8% and the $9,000/$13,500 thresholds)."
    },
    {
      "field": "params.incomeTax.credits",
      "url": "https://revenue.iowa.gov/media/2725/download",
      "title": "2026 IA 1040ES: low income exemption $9,000 single/MFS, $13,500 other statuses; worksheet line 7 personal and dependent exemption credits",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.conformity",
      "url": "https://revenue.iowa.gov/media/4435/download?inline=",
      "title": "Iowa starts from federal taxable income, so all federally excluded pre-tax payroll items are excluded",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.programmes",
      "url": "https://revenue.iowa.gov/media/4435/download?inline=",
      "title": "No employee-paid Iowa payroll programme (UI employer-paid)",
      "retrieved": "2026-10-07"
    }
  ]
}