Bonus tax calculator Iowa
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  • 1

    Pay Details

  • 2

    Exemptions

  • 3

    Federal Information

  • 4

    State Information

  • 5

    Locale Information

  • 6

    Voluntary Deductions

  • 7

    Calculate Paycheck

Calculate a flat bonus for your employee in seconds

Our flat bonus calculator can help you find the correct amount of federal and state taxes to withhold in a few clicks. Simply click the button below, enter your employee’s gross bonus amount on the next page, and we’ll do the work.

How much did your employee earn?

Bonus: Enter the total bonus pay your employee has earned this year. This is the amount of their bonus before taxes and deductions are withheld.

Gross Pay YTD: Enter the total gross pay your employee has earned this year, prior to this paycheck. Normally, this can be found on the last pay stub.

Check Date: Enter the check date that should appear on your paycheck.

Is your employee exempt from any taxes?

Federal: In some cases, public and governmental employees are exempt from federal taxes. Check “yes” if your employee is exempt and Federal taxes should not be deducted.

FICA: In some cases, public and governmental employees are exempt from FICA. Check “yes” if your employee is exempt and FICA taxes should not be deducted.

Medicare: In some cases, public and governmental employees are exempt from Medicare taxes. Check “yes” if your employee is exempt and Medicare taxes should not be deducted.

Please enter your employee’s withholding information.

Additional Federal Withholding: If your employee has asked to have additional funds withheld from each paycheck, enter the amount here. If they have not, enter “0”.

Round Federal Withholding: Would you like us to round your employee’s withholding totals to the nearest dollar? (It’s not required, but it is permitted)

Now, add information for their state.

State: Select the state where withholding should be calculated. It should be the same state where the work was performed.

Now, add locale information if applicable.

Does your employee have any voluntary deductions?

Please add any additional deductions for items like health insurance, 401(k), HSAs/FSAs, or any other benefits.


Select type of deduction needed:

401(k)

Add deduction

HSA

Add deduction

Custom

Add deduction

Let’s finish crunching the numbers!

Click the button below to see your paycheck calculated.

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Updated: June 28, 2025

The Iowa bonus tax calculator at the top of this page helps employers quickly estimate the net (take-home) pay employees should receive for bonus payments, using the state’s flat income tax rate.

Does Iowa tax bonuses?

Yes. Bonuses are considered taxable income and are subject to Iowa’s standard income tax withholding rules. Employers are responsible for withholding the correct amount and remitting it to the Department of Revenue. According to the Iowa Department of Revenue, supplemental wages include bonuses, overtime pay, commissions, and other special payments made in addition to regular wages. If federal tax is withheld at a flat rate, Iowa requires withholding at the state’s highest individual income tax rate of 3.8%. However, if the bonus is paid together with regular wages, the total amount should be taxed using Iowa’s standard withholding tables or formulas.

How to calculate bonus tax in Iowa

If the bonus is paid separately, employers can withhold at a flat 3.8%. If the bonus is combined with regular wages, the total amount should be taxed using Iowa’s regular withholding tables.

 

How can employers in Iowa pay bonuses to employees?

Bonuses can be paid via:

  • Check
  • Direct deposit
  • Pay card
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Why are bonuses taxed differently than standard pay?

They’re not — unless paid separately, bonuses are taxed the same as regular wages.

 

What is the bonus tax rate in Iowa?

As of 2025, Iowa uses a flat income tax rate of 3.8%.

How do bonuses work in Iowa?

Bonuses must be reported and withheld like any other compensation. If paid separately, employers should clearly identify them.

 

How much tax is taken out of a bonus in Iowa?

3.8% state + 22% federal = 25.8%, not including FICA.

 

More resources for Iowa employers and employees

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