Is unemployment income taxable in Iowa?

Check whether Iowa taxes unemployment compensation for 2025 or 2026 by entering benefit amounts and other income. The tool estimates the state tax impact and whether additional payments may be needed.

No login required.

How this calculation works

  • Uses unemployment benefits and other income inputs.
  • Applies Iowa taxability rules to estimate state tax.
  • Highlights whether additional payments may be needed.

Common mistakes and caveats

  • Federal tax rules are separate from Iowa rules.
  • Withholding on benefits is optional.
  • Local taxes are not included.

FAQ

Do I need Iowa withholding on unemployment benefits?

Withholding on unemployment is optional. This tool estimates the potential Iowa tax impact.

Last updated & sources

Last updated January 27, 2026.

Related tools

How much Iowa income tax will I owe for 2025?Do I need to make Iowa estimated tax payments in 2025?How much Iowa tax should be withheld from each paycheck?

TaxGuide Pro provides free state and federal tax calculators for individuals, freelancers, and small businesses.

Related tools

Property tax deduction estimator (federal) (IA)SALT deduction optimizer (federal impact) (IA)State capital gains tax estimator (IA)State estimated tax (quarterly) calculator (IA)State income tax calculator (IA)State paycheck withholding calculator (IA)