Withholding Tables -- Iowa issues 2025 withholding tax tables
Posted by DaveMoll on Dec. 18, 2024 / Subscribe 0
The Iowa Department of Revenue is issuing updated income tax withholding formulas and tables for 2025. The Department updates withholding formulas and tables when necessary to account for inflation and for changes in individual income tax liability resulting from changes in Iowa law. The Iowa withholding formula and the IA W-4 have been revised for tax year 2025 to accommodate changes to individual income tax required under Iowa SF 2442 that establishes a 3.80 percent flat tax rate on Iowa individual income beginning January 1, 2025. Because of changes reflected on the 2025 IA W-4 form, employees should be encouraged to file an updated Iowa W-4 using the 2025 IA W-4 (44-019). However, employers may continue to compute withholding based on the information from the employee's most recently furnished IA W-4. To do so, employers must make certain additional calculations for those employees whose IA W-4 on file dates to 2023 or earlier.
Taxpayers may access the 2025 withholding tables at this website:
https://revenue.iowa.gov/taxes/tax-guidance/withholding-tax/iowa-withholding-tax-information
An Iowa withholding tax calculator can be accessed at his website:
https://www.calcxml.com/do/cus121?r=2&skn=970&utm_medium=email&utm_source=govdelivery
StateWithholdingNews IowaNews
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