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IowaSales Tax

A Complete Guide For Businesses

Automate My IowaSales Tax Filings

State Rate
6.00%

Local Tax
yes

State Portal
Department of Revenue

Phone
(515) 281-3114

General requirements

Iowa is a destination-based state (sales are taxed where the buyer is located).

  • Sales tax is charged on the sale of tangible personal property (TPP) and certain services
  • For wholesalers, items purchased for resale aren’t taxed

File returns online using Iowa’s eFile & Pay.

Rates

The state sales tax rate in Iowa is 6%. Some local jurisdictions impose a local option sales tax at the rate of 1%.

For more information, including lists of jurisdictions with the local option tax, see Iowa Local Option Tax Information.

For a fast and accurate sales tax rate lookup by zip code, use our up-to-date calculator below.

Look up your Iowa sales tax rate:

How food is taxed

Sales of food products for consumption off the premises of the retailer are exempt from tax.

Retailer-prepared food for immediate consumption, candy products, and certain beverages are taxable.

Nexus in Iowa

Business activities that establish a minimum tax connection to the state include:

  • Maintaining a physical place of business including a warehouse or distribution center
  • Having employees, independent contractors, or representatives working in the state
  • Delivering goods in business owned vehicles
  • Owning property in the state

Economic nexus in Indiana:

  • According to state law, out-of-state sellers whose sales into the state exceed $100,000 gross revenue or 200 separate transactions in the current or previous calendar year are required to register with the state, collect sales tax on sales to Iowa, and remit that sales tax to the state.
  • Effective date: Jan. 1, 2019
  • Iowa provides guidance for remote sellers under these new regulations.

Find more information about nexus in Iowa.

Filing schedule

Your filing deadline and filing frequency is determined by sales tax liability as follows:

  • Annual filers: Returns are due on January 31st of the following year, if you owe less than $120 in tax per year
  • Quarterly filers: Returns are due on the last day of the month following the end of the quarter, if you owe between $120 and $6,000 in tax per year
  • Monthly filers: Returns are due on the 20th of the following month for the first 2 months of the quarter (However, for the third month of the quarter, file the quarterly return with the payment for the balance of tax due for that quarter - this return is due on the last day of the month following each calendar quarter), if you owe between $6,000 and $60,000 in tax per year

Registering to collect sales tax in Iowa

If you plan to make taxable sales from an Iowa location, you must obtain a sales tax permit. A sales tax permit must be obtained for each Iowa business location.

Your options to apply for a permit are:

There is no charge for a permit. You’re not required to display the printed permit; however, it should be readily available to prove you have one.

Penalties

The Department of Revenue states that if you file or pay tax after the due date, penalty and interest may apply and that interest rates change yearly.

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