IDR issues new income withholiding tax tables for 2019

November 13, 2018
The Iowa Department of Revenue is issuing new income tax withholding tables for 2019 to better align with recent changes in state tax laws.

For individuals, this means that employers will be reducing the amount of Iowa tax withheld from employees’ paychecks, beginning Jan. 1, 2019. The result is take-home wages for individuals will increase.

The changes to the withholding tables, which have remained the same since 2006, are designed to align the amount of income tax employers remit to the state with the individual income tax cuts included in SF 2417, signed by Governor Kim Reynolds this past spring. The Department estimates this change will result in a reduction of $273 million in state income tax withholding in 2019. Over the next five years, the Department will continue to adjust the withholding tables as needed to reflect the phasing in of Tax Reform

Employers can find the new Iowa 2019 withholding formulas and tables here.

The Department has created an online Withholding Calculator to help individuals calculate 2019 withholding amounts. As a reminder, employers will automatically change 2019 withholding, but employees can make changes to their Iowa W-4 (withholding) form by contacting their employer.

Employers with questions can contact the Department at 515-281-3114 or 800-367-3388. Visit https://tax.iowa.gov/resources/newsroom for more information.