Iowa Nanny Tax Guide
Iowa recently simplified its tax code to a flat 3.8% rate, making withholding calculations easier. The state has no disability or paid leave mandates.
Minimum Wage
$7.25/hour (federal)
SUTA Rate Range
0.0% - 7.0%
Key Things to Know
- Flat state income tax of 3.8%
- Uses federal minimum wage
- No disability or paid leave requirements
- High SUI wage base ($36,100)
Iowa Employer Requirements
State Income Tax
Iowa uses a flat 3.8% income tax rate (reduced from prior progressive rates). This makes calculating withholding straightforward.
State Unemployment Insurance
Employers pay SUI tax on the first $36,100 of wages. New employer rate is 1.0%, with rates ranging from 0.0% to 7.0% based on experience.
Workers' Compensation
Iowa generally does not require workers' compensation for household employees, but coverage is recommended for protection.
What will it cost?
Wondering what you'll actually owe as a Iowa employer? Adjust the numbers below to get a quick estimate of your annual tax obligations.
This guide is for informational purposes only and should not be considered legal or tax advice. Tax laws change frequently. Always verify current requirements with your state's tax agency or consult with a qualified tax professional.
Learn More
Nanny Tax Calculator
See exactly what you'll owe in taxes for your situation.
2026 Tax Deadline Calendar
All quarterly deadlines for Iowa and federal taxes.
Complete Guide to Nanny Taxes
Everything you need to know about household employment taxes.
Nanny Cost by State
Compare Iowa employer costs to all 50 states.
NannyKeeper handles Iowa taxes automatically
We calculate and track all state-specific requirements so you don't have to.
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