Sunday, January 1, 2023

You may notice a change in your Iowa tax withholding on your January 1st paycheck.

On March 1, 2022, Governor Reynolds signed into law a tax reform bill which includes establishing a 3.9 flat income tax rate that will be phased in over four years.  Beginning in tax year 2023, there will be four tax brackets ranging from 4.4% to 6.0%.  In subsequent years, the top rate will be reduced on an annual basis until a 3.9% flat tax rate is achieved in tax year 2026.

The University recommends that you contact a professional tax preparer for assistance with your personal income tax planning and in adjusting your Iowa W-4 form, if appropriate.   

More information about the tax reform bill is located on the Office of the Governor of Iowa’s website.

The Iowa Department of Revenue tax withholding tables are located on the Iowa Department of Revenue’s website.