Iowa’s 2025 withholding methods are the first to use a flat tax rate of 3.8%, but also make changes to the standard deduction depending on which version of the state’s withholding certificate an employee has filed, the state revenue department said Oct. 25.
The amount of the standard deduction will depend on an employee’s filing status instead of the amount of state allowances claimed, the department said in the withholding formula. If an employee has filed the Form IA W-4 from 2024 or later, the 2025 standard deduction is $24,050 if the employee is a qualified surviving spouse or ...
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