Changes to Iowa’s withholding formula take effect Jan. 1, 2024, and an update to the state withholding certificate for 2024 is also planned, the state revenue department said Dec. 7.
The withholding formula uses three tax brackets of 4.4%, 4.82%, and 5.7%, instead of the four used in 2023. The state standard deductions depend on the state allowances claimed and increased to $14,600 or $29,200 annually, up from $13,850 or $27,700.
The formula indicates that Form IA W-4, Employee Withholding Allowance Certificate, will change for 2024 and that state allowances will be represented as dollar values instead of a number. ...
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