Iowa Self-Employment Tax Calculator

Calculate your self-employment tax, federal income tax, and Iowa state income tax as a freelancer or 1099 contractor. Iowa has a progressive income tax with a top rate of 5.

Annual Tax Breakdown

1099 Income
$85,000
Business Expenses
-$10,000
Net Profit
$75,000
Net Earnings (92.35%)(SE tax base)
$69,263
Social Security (12.4%)
-$8,589
Medicare (2.9%+)
-$2,009
Total SE Tax
-$10,597
SE Deduction (50%)(reduces income tax)
$5,299
Federal Income Tax
-$6,794
State Income Tax
-$4,108
Total Tax Owed
$21,499

Summary

Total Income
$75,000
Total Taxes
-$21,499
After-Tax Income
$53,501
Effective Tax Rate(on total income)
28.7%

Quarterly Estimated Payments

Q1 (Jan-Mar)Due April 15
$5,375
Q2 (Apr-May)Due June 15
$5,375
Q3 (Jun-Aug)Due September 15
$5,375
Q4 (Sep-Dec)Due January 15 (next year)
$5,375
Each Quarterly Payment
$5,375

Tax Breakdown

See your complete freelancer financial picture

Your estimated quarterly tax payment is $5,375. Model your freelance income alongside expenses, savings, and investments in the full simulator.

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Iowa Tax Overview for Freelancers

Iowa has a progressive income tax with a top rate of 5.7%. The state has been reducing its top rate in recent years. Self-employed individuals in Iowa pay federal self-employment tax (15.3%) plus federal income tax, and Iowa state income tax on their net self-employment earnings.

Progressive rates up to 5.7%Rates being reduced over timeNo tax on Social SecurityStrong financial services sector

Self-Employment Taxes in Iowa

If you work as a freelancer or independent contractor in Iowa, your tax situation involves multiple layers: federal self-employment tax, federal income tax, and Iowa state income tax. Understanding how each component works helps you plan your quarterly estimated payments and maximize your deductions.

Iowa Income Tax for Freelancers

Iowa has a progressive income tax with a top rate of 5.7%. The state has been reducing its top rate in recent years.

Cost of Living for Freelancers in Iowa

Iowa's cost of living is about 10% below the national average with very affordable housing. As a freelancer in Iowa, your effective earnings depend not just on your tax rate but also on what your after-tax income can buy. Consider local costs for housing, coworking spaces, and daily expenses when setting your rates.

Financial Tips for Iowa Freelancers

  • Iowa has been cutting income tax rates — check current year rates for accurate calculations
  • Iowa's low cost of living stretches your income further than most states
  • Iowa does not tax Social Security benefits
  • Des Moines' financial services industry offers strong career opportunities

Key Iowa Tax Features

  • Progressive rates up to 5.7%
  • Rates being reduced over time
  • No tax on Social Security
  • Strong financial services sector

Model Your Iowa Freelance Finances Over Time

This calculator shows your Iowa tax bill. Trajectoryy's full simulator models your freelance income alongside expenses, savings, investments, and more — month by month for years into the future.

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Compare Iowa with Other States

Minnesota9.85% top rateWisconsin7.65% top rateIllinois4.95% top rateCalifornia13.3% top rateNew York10.9% top rateTexasNo income tax

Frequently Asked Questions

How is self-employment tax calculated in Iowa?
Self-employed workers in Iowa pay federal self-employment tax (15.3% on 92.35% of net earnings), federal income tax, and Iowa state income tax. Iowa has a progressive income tax with a top rate of 5.7%. The state has been reducing its top rate in recent years.
How much will I owe in quarterly taxes as a freelancer in Iowa?
Your quarterly estimated tax payment in Iowa depends on your total tax liability — including SE tax, federal income tax, and Iowa state income tax. Use the calculator above to estimate your quarterly payments. As a general rule, freelancers should set aside 25-35% of their net income for taxes.
What business deductions are available for Iowa freelancers?
Freelancers in Iowa can deduct the same federal business expenses as in any state: home office, equipment, software, health insurance, vehicle expenses, and more. These deductions also reduce your Iowa state taxable income, providing additional state tax savings.
Does Iowa have any special taxes for self-employed workers?
Iowa does not have a separate self-employment tax. However, your net self-employment income is subject to Iowa's regular income tax (5.7% top rate) in addition to federal self-employment tax and federal income tax.
Should I form an LLC or S-Corp as a freelancer in Iowa?
The decision to form an LLC or S-Corp in Iowa depends on your income level. Generally, if your net self-employment income exceeds $50,000-$60,000, an S-Corp election may save you money by allowing you to pay yourself a reasonable salary (subject to FICA/Medicare) while taking the rest as distributions (not subject to SE tax). Consult a Iowa tax professional for advice specific to your situation.

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State Tax-$2,384
FICA + Medicare-$4,973
Net Pay$50,181
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