Employer payroll taxes in Iowa for 2026
On top of each paycheck, a Iowa employer pays these taxes. None of them come out of the employee's pay. On a $60,000 salary they add $4,836.00 a year, so the employee costs $64,836.00.
| Employer tax | Rate | Wages taxed |
|---|---|---|
| Social Security | 6.2% | First $184,500 |
| Medicare | 1.45% | No limit |
| Federal unemployment (FUTA) | 0.6% | First $7,000 |
| Iowa unemployment (SUTA) | 1% for new employers | First $20,400 |
Iowa unemployment tax (SUTA)
Iowa employers pay state unemployment tax on the first $20,400 of each employee's wages in 2026. A new employer starts at 1%, and experienced employers pay from 0% to 5.4% depending on their layoff history.
New employers pay 1%. New construction employers pay 5.4%.
What an employee costs in Iowa
Yearly employer taxes and total cost for a single filer paid every two weeks, at the new-employer unemployment rate, for an employer with 10 employees. Benefits and workers' compensation insurance are extra.
| Salary | Employer taxes | Total cost | Added to pay | Employee take-home |
|---|---|---|---|---|
| $30,000 | $2,541.00 | $32,541 | 8.5% | $25,679 |
| $40,000 | $3,306.00 | $43,306 | 8.3% | $33,334 |
| $50,000 | $4,071.00 | $54,071 | 8.1% | $40,989 |
| $60,000 | $4,836.00 | $64,836 | 8.1% | $48,644 |
| $75,000 | $5,983.50 | $80,984 | 8% | $59,277 |
| $100,000 | $7,896.00 | $107,896 | 7.9% | $75,914 |
| $125,000 | $9,808.50 | $134,809 | 7.8% | $92,488 |
| $150,000 | $11,721.00 | $161,721 | 7.8% | $108,625 |
Withholding from Iowa paychecks
From the employee's pay you withhold federal income tax under the W-4, 6.2% Social Security, 1.45% Medicare and Iowa income tax. Employees checking their own pay can use the Iowa paycheck calculator. Running a bonus? Use the bonus payroll calculator.
Iowa employer taxes compared with nearby states
The same $60,000 employee, at each state's new-employer unemployment rate. Of the states that border Iowa, Nebraska has the lowest employer taxes.
| State | State unemployment | All employer taxes | Total cost |
|---|---|---|---|
| Iowa | $204.00 | $4,836.00 | $64,836 |
| Illinois payroll calculator | $477.38 | $5,109.38 | $65,109 |
| Minnesota payroll calculator | $1,010.24 | $5,642.24 | $65,642 |
| Missouri payroll calculator | $213.84 | $4,845.84 | $64,846 |
| Nebraska payroll calculator | $112.50 | $4,744.50 | $64,745 |
| South Dakota payroll calculator | $262.50 | $4,894.50 | $64,895 |
| Wisconsin payroll calculator | $427.00 | $5,059.00 | $65,059 |
Sources
Iowa unemployment and program rates come from the state's own 2026 figures: workforce.iowa.gov, workforce.iowa.gov, workforce.iowa.gov. Federal figures follow IRS Publication 15 and Publication 15-T. See how we calculate for the withholding method.