2026 tax year · Iowa
Rental host taxes in Iowa
Airbnb, Turo and the rest report your gross and withhold nothing. The gap between that and what you are actually taxed on is your costs, in Iowa that gap is worth $2,609 in tax.
Take a driver who grossed $39,000 over 18,000 business miles. After mileage at 74.3 cents and the rest of the stack, worked through on the rental host page $10,100 comes off and $28,900 is left as taxable profit. That profit is what Iowa and the IRS charge against.
What that leaves you owing in Iowa
Iowa taxes income at a flat 3.8% for 2026, applied on top of federal income tax and self-employment tax.
| Self-employment tax | $4,083 |
| Federal income tax | $861 |
| Iowa income tax | $1,021 |
| Total tax | $5,965 |
| Effective rate on gross | 15.3% |
Earning more in Iowa
A single filer taking the standard deduction, this work as the only income, the calculator above handles the other filing statuses. Miles rise with earnings, so the deduction rises too, and the effective rate on gross climbs more slowly than it would for someone whose income grew without expenses attached:
| Volume | Gross | Mileage off | Taxable profit | Iowa tax | Total tax | Rate on gross |
|---|---|---|---|---|---|---|
| Part-time | $13,000 | $0 | $13,000 | $459 | $2,296 | 17.7% |
| Steady side income | $39,000 | $0 | $39,000 | $1,377 | $8,574 | 22.0% |
| Full-time | $63,000 | $0 | $63,000 | $2,225 | $14,954 | 23.7% |
Switching state opens that state's page.
Enter your numbers and press Calculate to see your 2026 estimate.
Local taxes on an Iowa let
The income tax below is only part of it. Short-term lets attract occupancy, lodging or transient taxes levied by the city or county rather than Iowa, often at rates that dwarf the state income tax. Some platforms collect and remit them; some collect only part; in some places the host is on the hook entirely. That is a local question this calculator cannot answer, and it is the one hosts most often get wrong.
On $28,900 of profit, what the states around Iowa would charge:
| State | Its tax | vs Iowa |
|---|---|---|
| South Dakota | No income tax | −$1,098 |
| Nebraska | $1,014 | −$84 |
| Wisconsin | $1,145 | +$47 |
| Missouri | $1,217 | +$119 |
| Illinois | $1,431 | +$332 |
| Minnesota | $1,546 | +$448 |
- South Dakota has no income tax at all, so the same work done there costs $1,098 less in state tax than it does in Iowa.
- Nebraska would take $84 less, $1,014 against Iowa's $1,098.
- Wisconsin would take $47 more, $1,145 against Iowa's $1,098.
- Missouri would take $119 more, $1,217 against Iowa's $1,098.
- Illinois would take $332 more, $1,431 against Iowa's $1,098.
- Minnesota would take $448 more, $1,546 against Iowa's $1,098.
Rental host tax questions in Iowa
How much should an Iowa host set aside?
About 15.3% of gross on the $39,000 example, $5,965 across self-employment tax, federal income tax and $1,021 to Iowa. Set aside from each payout rather than finding it in April.
Does the $39,000 on my 1099-NEC match what Iowa taxes?
No. Iowa taxes profit, not gross. After $10,100 of deductions the taxable figure is $28,900, so the Iowa bill is $1,021 rather than what gross alone would suggest.