State sales tax rate6%
* While the base rate applies statewide, it’s only a starting point for calculating sales tax in Iowa. For an accurate tax rate for each jurisdiction, add other applicable local rates on top of the base rate.
Iowa sales tax basics
The Iowa (IA) state sales tax rate is currently 6%. Depending on local municipalities, the total tax rate can be as high as 8%. Food and prescription drugs are exempt from sales tax.
All businesses selling tangible personal property or engaging in retail sales must register with the state. Iowa is a Streamlined Sales Tax state. Businesses selling into multiple states may register with the Streamlined Sales Tax Project.
Anyone selling taxable goods or services from an Iowa location must obtain a sales tax permit. A sales tax permit must be obtained for each Iowa business location.
See the Sales and Use Tax information booklet for more information.
Iowa businesses are required to file and pay taxes on the 5th OR the 25th of the month depending on the deadline assigned by the Iowa Department of Revenue. See the deadline chart for more information.
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