This paper deals with a state-space approach for adaptive second-order IIR notch digital filters with constrained poles and zeros. A simplified iterative algorithm is derived from the gradient-descent method to minimize the mean-squared output of an adaptive notch digital filter. Then, stability and parameter-estimation bias are analyzed for the simplified iterative algorithm. A numerical example is presented to demonstrate the validity and effectiveness of the proposed adaptive state-space notch digital filter and parameter-estimation bias analysis.