The Iowa withholding formula and IA W-4 form have been updated for 2025 to reflect changes in state income tax laws. Starting January 1, 2025, Iowa will adopt a flat 3.8% income tax rate as required by Senate File 2442, passed in May 2024.
When you receive your January 2025 pay stub, compare it to your December 2024 pay stub to see how the new tax law (Senate File 2442) has affected the Iowa income tax withheld from your paycheck. If you think any adjustments are needed, contact Shane Wolf, Payroll Specialist, to request a 2025 State W-4 form. Shane can be reached by phone at (319) 273-8203 or by email at swolf@centralriversaea.org.