State guide

Iowa sales tax rate and guide (2026)

Last updated Checked monthly

Iowa’s state sales tax rate is 6%. Local taxes add up to 1% more, so the rate you charge runs from 6% to 7%, depending on where you deliver.

Calculated by the Sales Tax APIThe same engine Zamp customers use.

Iowa state rate

6%

State 6%Local up to 1%

Combined rate
6% to 7%
Most common
7%40 of 41 cities
Remote sellers collect after
$100,000in sales a year
Calculate tax on a sale

Iowa sales tax calculator

Choose a city or enter an address.

Delivered to a Iowa city
Sales tax$7.00on $100.00 · total $107.00
Taxable7% combined rate
  • IowaState · 6%$6.00
  • Polk CountyLocal · 1%$1.00

General merchandise delivered to Des Moines, IA 50301.

Charging this at checkout? Zamp calculates it on every order and files the returns.

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Iowa sales tax at a glance

Rates

State rate
6%
Local rates
Up to 1%
Combined rates
6% to 7%
Most common
7%, in 40 of 41 cities

Selling into Iowa

Economic nexus
$100,000 in sales a year
Sourcing
Destination-based: the rate where the customer takes delivery. Most cities and counties add a 1% local option tax.
SaaS
Taxable
Shipping
Not taxable

Registering and filing

Filing portal
GovConnectIowa
Returns due
The last day of the following month
Filing schedule
Monthly, quarterly or annual

Sales tax rates in Iowa’s largest cities

All 41 cities
Sales tax rates in the largest Iowa cities
CityCountyBreakdownRate
Des MoinesPolk CountyState 6%Polk County 1%7%
Cedar RapidsLinn CountyState 6%Linn County 1%7%
DavenportScott CountyState 6%Scott County 1%7%
Sioux CityWoodbury CountyState 6%Woodbury County 1%7%
AnkenyPolk CountyState 6%6%
Iowa CityJohnson CountyState 6%Johnson County 1%7%
West Des MoinesPolk CountyState 6%Polk County 1%7%
AmesStory CountyState 6%Story County 1%7%
WaterlooBlack Hawk CountyState 6%Black Hawk County 1%7%
Council BluffsPottawattamie CountyState 6%Pottawattamie County 1%7%
DubuqueDubuque CountyState 6%Dubuque County 1%7%
UrbandalePolk CountyState 6%Polk County 1%7%
MarionLinn CountyState 6%Linn County 1%7%
Cedar FallsBlack Hawk CountyState 6%Black Hawk County 1%7%
BettendorfScott CountyState 6%Scott County 1%7%
WaukeeDallas CountyState 6%Dallas County 1%7%
MarshalltownMarshall CountyState 6%Marshall County 1%7%
Mason CityCerro Gordo CountyState 6%Cerro Gordo County 1%7%
OttumwaWapello CountyState 6%Wapello County 1%7%
JohnstonPolk CountyState 6%Polk County 1%7%
Fort DodgeWebster CountyState 6%Webster County 1%7%
ClintonClinton CountyState 6%Clinton County 1%7%
CoralvilleJohnson CountyState 6%Johnson County 1%7%
BurlingtonDes Moines CountyState 6%Des Moines County 1%7%

What’s taxable in Iowa?

The tax on a $100 sale in Des Moines.

Everyday goods

  • General merchandiseTaxable$7.00
  • ClothingTaxable$7.00
  • Clothing accessoriesTaxable$7.00
  • Personal care productsTaxable$7.00
  • Feminine hygiene productsExempt$0
  • Children’s diapersExempt$0
  • Pet foodTaxable$7.00

Food and drink

  • Groceries (food for home)Exempt$0
  • Prepared foodTaxable$7.00
  • CandyTaxable$7.00
  • Snack foodExempt$0
  • Soft drinksTaxable$7.00
  • Bottled waterExempt$0
  • Juice (70–99% juice)Exempt$0
  • Dietary supplementsTaxable$7.00

Health

  • Prescription drugsExempt$0
  • Over-the-counter drugsTaxable$7.00

Software and digital

  • SaaS (consumer)Taxable$7.00
  • SaaS (business)Exempt$0
  • AI softwareTaxable$7.00
  • Downloaded softwareTaxable$7.00
  • Digital productsTaxable$7.00
  • eBooksTaxable$7.00
  • Streaming subscriptionsTaxable$7.00
  • Data processingExempt$0

Services

  • General servicesExempt$0
  • Repair of goodsExempt$0
  • InstallationExempt$0
  • Optional warrantiesTaxable$7.00

Most Iowa cities pay 7%

Every sale pays the 6% state rate. Cities, counties and special districts add up to 1% more, so the rate depends on the delivery address.

Iowa rate changes since 2023

3cities changed their rate
3went up
0went down
38didn’t change
Iowa cities whose sales tax rate changed since 2023
City2023TodayChangeChanged in
Iowa City6%7%↑ 1%2025
Coralville6%7%↑ 1%2026
North Liberty6%7%↑ 1%2026

Iowa sales tax due dates for 2026

Returns are due the last day of the month after each period. A due date on a weekend or holiday moves to the next business day.

Monthly
PeriodDue
January 2026March 2
February 2026March 31
March 2026April 30
April 2026June 1
May 2026June 30
June 2026July 31
July 2026August 31
August 2026September 30
September 2026November 2
October 2026November 30
November 2026December 31
December 2026February 1 2027
Quarterly
PeriodDue
Q1 (January–March) 2026April 30
Q2 (April–June) 2026July 31
Q3 (July–September) 2026November 2
Q4 (October–December) 2026February 1 2027
Annual
PeriodDue
2026February 1 2027

Never miss a Iowa due date.

Zamp files and pays every Iowa return on time and answers the state’s notices. You approve; we handle the rest.

Iowa sales tax guide

Nexus, registration, collecting and filing.

With different local sales tax rates and complex state regulations, Iowa’s sales tax rules can be challenging to navigate.

This guide covers the essentials, including what creates nexus and how to collect and remit sales tax properly. We’ll also introduce a reliable solution to simplify sales tax compliance in Iowa and across other states.

Iowa Sales Tax Rate 2026

Iowa applies a 6% state sales tax to most goods and services. Some municipalities can also impose a 1% local option tax.

Collecting Iowa Sales Tax from Customers

Here’s what you should know about charging and collecting sales tax in Iowa:

Do I Have to Collect Iowa Sales Tax from Customers?

If your business sells taxable tangible personal property, you must collect sales tax unless the sale qualifies for an exemption.

What Creates Sales Tax Nexus in Iowa?

The following conditions can create a sales tax nexus in Iowa:

  • Physical nexus: Businesses that own or maintain an office, distribution house, warehouse, or other place of business either directly or by subsidiary in the state.
  • Employees: Businesses that carry out the solicitation of tangible personal property sales via employees, brokers, contractors, agents, or other representatives.
  • Delivery: Businesses that conduct delivery using their own vehicles in the state.
  • Services: Businesses that perform taxable services in Iowa.
  • Economic nexus: Remote sellers with $100,000 or more in gross revenue in Iowa during the current or previous calendar year.

Learn more about sales tax nexus and when you’re required to collect sales tax.

Do I Have to Collect Sales Tax from Iowa Customers if I Sell on Amazon, Walmart, eBay, or Etsy?

No.

Iowa has a marketplace facilitator law that requires platforms like Amazon to collect sales tax from third-party sellers on their platforms. However, sellers with annual sales under the $100,000 threshold are not required to collect or remit sales tax in Iowa.

Zamp Tip

If you meet other sales tax nexus rules in Iowa, you must still collect sales tax on your non-marketplace sales.

Taxable Products in Iowa

Here’s a breakdown of what’s taxable in Iowa:

Are Groceries Taxable in Iowa?

Iowa doesn’t tax grocery items, like cooking ingredients or food for domestic home consumption.

Are Digital Products Taxable in Iowa?

Specified digital products like digital audiobooks, ebooks, and movies are taxable in the state.

Is Software-as-a-Service (SaaS) Taxable in Iowa?

Yes, all types of pre-written computer software, such as software delivered or accessed in physical form or electronically, are subject to sales tax in Iowa.

Are Services Taxable in Iowa?

In Iowa, services, like beauty services and boat repair, are only subject to sales tax if they are specifically listed under state law.

Tax-Exempt Items

Some items that are sales tax exempt in Iowa are:

  • Sales of food for human consumption
  • Sales of chemicals and fertilizers for direct use in agricultural production
  • Sales of food for livestock and domesticated fowl
  • Sales of specified medical equipment, like nebulizers, and prescription medicines, such as aspirin

How to Register for an Iowa Sales Tax Permit

You can register online at the Iowa official website.

Learn how to obtain a seller’s permit in every US state.

Do I Need an Iowa Sales Tax License if I’m Only a Wholesaler?

Yes, you need a state tax permit even if you’re a wholesaler.

How to Collect Sales Tax in Iowa

Iowa follows destination-based sales tax sourcing for in-state or out-of-state sales. This means you must charge the sales tax rate that applies to the buyer’s shipping address when selling to an Iowa resident.

How to File and Pay Sales Tax in Iowa

There are multiple ways to file and pay Iowa sales tax:

  • Automated: Let Zamp handle your Iowa sales tax filing and remittance, so you won’t have to deal with sales tax returns ever again.
  • File online: Pay online at the official Iowa Website.

Explore how you can file and pay sales tax in other US states.

All 41 Iowa cities

A

B

  • Bettendorf7%
  • Boone7%
  • Burlington7%

C

  • Carroll7%
  • Cedar Falls7%
  • Cedar Rapids7%
  • Clinton7%
  • Clive7%
  • Coralville7%
  • Council Bluffs7%

D

  • Davenport7%
  • Des Moines7%
  • Dubuque7%

F

  • Fort Dodge7%

G

  • Grimes7%

I

  • Indianola7%
  • Iowa City7%

J

  • Johnston7%

L

  • Le Mars7%

M

  • Marion7%
  • Marshalltown7%
  • Mason City7%
  • Muscatine7%

N

  • Newton7%
  • North Liberty7%
  • Norwalk7%

O

  • Oskaloosa7%
  • Ottumwa7%

P

  • Pella7%
  • Pleasant Hill7%

S

  • Sioux City7%
  • Spencer7%
  • Storm Lake7%

U

  • Urbandale7%

W

  • Waterloo7%
  • Waukee7%
  • Waverly7%
  • West Des Moines7%

Iowa sales tax questions.

Still have questions? Call us at 1-866-438-9267 or email us at support@zamp.com.

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What is the sales tax rate in Iowa?

The Iowa state sales tax rate is 6%. Cities, counties and special districts add up to 1% more in the 41 cities we checked, so the combined rate runs from 6% to 7%. The most common combined rate is 7%.

What is the sales tax rate in Des Moines, Cedar Rapids, Davenport and Sioux City?

Des Moines: 7%. Cedar Rapids: 7%. Davenport: 7%. Sioux City: 7%. Rates can differ by street address inside a city, so check the exact address with the calculator.

Do I have to collect Iowa sales tax if my business is in another state?

Yes, once your sales into Iowa pass $100,000 in the previous or current calendar year (economic nexus), or if you have a physical presence there, such as staff, inventory or an office. You then register with the Iowa Department of Revenue, collect tax on taxable sales to Iowa buyers and file returns.

Is SaaS taxable in Iowa?

Yes. Software as a service is taxed in full in Iowa.

Are groceries and clothing taxed in Iowa?

Groceries (food for home) are exempt in Iowa. Clothing is taxable. Prepared food, candy and soft drinks follow their own rules; the table above shows each category.

Is shipping taxable in Iowa?

No. Separately stated shipping charges aren’t taxed in Iowa.

Has the Iowa sales tax rate changed recently?

The state rate hasn’t changed, but 3 of the 41 cities we checked have a different combined rate than in July 2023, including Iowa City (6% to 7%), Coralville (6% to 7%), North Liberty (6% to 7%).

Which rate do I charge: my location or my customer’s?

Destination-based: the rate where the customer takes delivery. Most cities and counties add a 1% local option tax. A seller based in Iowa charges the rate where the sale is made for most in-state sales; a remote seller charges the rate at the buyer’s address.

What is use tax?

Use tax applies to goods and services when sales tax wasn’t collected, often from out-of-state suppliers. Normally, retailers collect it, but if they aren’t required (no physical presence or under $100,000 in Iowa sales) or fail to do so, the purchaser must remit use tax once they buy the taxable item.

How often do I need to file and pay sales tax in Iowa?

You must file and pay sales tax based on the amount you collect:

  • Annual: Less than $1,200 in sales and use tax a year
  • Seasonal: $1,200 or more in sales and use tax in four or fewer months per year
  • Monthly: $1,200 or more in sales and use tax per year

Sources. Iowa Department of Revenue · GovConnectIowa · Zamp Sales Tax API · U.S. Census Bureau. Rates are checked monthly and are for information, not tax advice.

Sell into Iowa? Let Zamp handle it.

Zamp registers you, calculates tax on every order at the customer’s address, files every Iowa return and handles notices, with a sales tax team you can call.

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