Iowa Nearly Halves Unemployment-Taxable Wage Base for 2026

Iowa’s unemployment-taxable wage base will be $20,400 for 2026, nearly half of the current $39,500 wage base for 2025, Iowa Workforce Development said.

The decreased wage base is the result of legislation signed into law last month by Gov. Kim Reynolds (R), which modified the way the wage base is annually calculated, the agency said in a press release. The legislation also lowered the maximum unemployment insurance tax rate to 5.4% from 9%, the agency said.

Unemployment insurance benefits are also increasing effective July 6, the agency said. Weekly benefits range from $93 to $763 depending on an individual’s ...