Iowa is a destination-based state (sales are taxed where the buyer is located).
File returns online using Iowa’s eFile & Pay.
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.
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.
Business activities that establish a minimum tax connection to the state include:
Find more information about nexus in Iowa.
Your filing deadline and filing frequency is determined by sales tax liability as follows:
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.
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.