Iowa Sales Tax

On this page you will find handy sales and use tax information about Iowa.

How to use this page:

We’ve pulled in the information from all our Charts for a consolidated view by state.  Here you can see the sales tax rates and if the state has remote seller nexus rules. You can also see any sales tax holidays or amnesty programs that may exist, though these do not apply to all states.

Below the chart you can find any News & Tip item we have published that relates to Iowa that you can filter by topic. This will help you get informed on current and past legislation that has passed in the state.

State Rate

6.000% Remote sellers are required to collect sales tax if they exceed Iowa’s economic nexus threshold.

Range of Local Rates

0% – 2% Some local jurisdictions do not impose a sales tax.

Local Rates Apply to Use Tax

No Remote sellers are required to collect sales tax if they exceed Iowa’s economic nexus threshold.




6/11/2013 and 1/1/2019




1/1/2019 – see state notice



Annual Back to School Holiday

August 6-7, 2021

1. Clothing and footwear – less than $100 per item (excluding clothing accessories).



Amnesty Filing Dates

July 1, 2012 - November 1, 2013

Go to Iowa Amnesty Page


Unclaimed Property


Waiver of interest and penalties.

Administration Information
Streamlined Sales Tax Status

Full Member


1,002 Sales Tax Jurisdictions



Sales Tax Sourcing (Intrastate)


Sales Tax Return Due Date

Last day of the month following the reporting period

Exemption Information

Iowa Resale Certificate


Product types of exemptions: resale, leasing, farm machinery and equipment, processing, R&D equipment, specified digital products, production utilities, pollution control equipment


Entity types of exemptions: sales from educational, religious, or charitable activities; government agencies, museums, residential care facilities


Iowa Exemption Certificate Forms

State Links
State Tax Web Page

Iowa Department of Revenue

Rate Look-Up Page

Iowa Sales Tax Rate Look-Up

Registration Link

Register for Iowa Sales Tax

History & Fun Facts

  • Iowa sales tax was first imposed in 1934 at a rate of 2 percent and applied only to gross receipts from the sale of tangible personal property, metered gas, electricity, water, communication services, and amusement and athletic event admissions.
  • Iowa sales tax was made permanent on April 1, 1937 and the state imposed a complimentary use tax.
  • In 2004, Iowa enacted legislation to conform with the Streamlined Sales and Use Tax Agreement.

  • In 2007, the Iowa Department of Revenue sent retailers a bulletin reminding them to quiz customers about their intentions for the purchase of pumpkins. Iowa taxes retail sales but exempts groceries and was losing out on tax dollars – particularly around Halloween – when pumpkins were categorized as food at checkout.

Iowa Adopts New Rules Related to Bundled Transactions and Specified Digital Products

The Iowa Department of Revenue adopted new rules on bundled transactions and specified digital products to fully implement the language and definitions part of legislation enacted in 2018.

Economic Nexus State Guide

Key information such as effective dates, thresholds, and includable sales for out-of-state sellers making sales into states that have enacted economic nexus legislation both before and after the South Dakota v. Wayfair Supreme Court decision.

State Notices & Resources for Remote Sellers

Use this state by state guide to find each state\’s initial guidance on how to proceed post-Wayfair, state resources such as FAQs, and any state activity such as going through a legislative process that impacts remote sellers.

Iowa Provides Guidance on Exemption for Computers and Computer Peripherals

Iowa has provided guidance regarding the state’s sales tax exemption for computers and computer peripherals.

Iowa Enacts Change to Persons Eligible for Manufacturing Exemption

Effective August 19, 2020, Iowa has enacted legislation that narrows the limitation on persons eligible for the state’s manufacturing sales tax exemption.

Sellers May Be Contacted About Other Taxes Under New Streamlined Sales Tax Governing Board Rule

Sellers registered through SSTP may be contacted about other taxes in the member states where they register with the SSTP.

Iowa Department of Revenue Explains Sales Tax Responsibilities of Food Manufacturer Remote Seller

The Iowa Department of Revenue issued a ruling to explain the sales tax implications of a remote seller that sells baked goods and other products into the state.

Iowa Expands Tax Base to Include Additional Specified Services

Iowa has enacted legislation that expands the state’s tax base to include additional specified services, effective January 1, 2019.

Home Improvement Labor Subcontracted by Big Box Retailer is Subject to Iowa Sales Tax

The Supreme Court of Iowa has ruled that installation labor for specific home improvement projects subcontracted by Lowe’s is subject to Iowa sales tax while other specified subcontracted installation labor is exempt. Lowe’s had appealed a district court’s judgement affirming…

House Introduces Online Sales Simplicity and Small Business Relief Act of 2018

On September 13, 2018, Rep. Jim Sensenbrenner (R-WI) and additional U.S. House members introduced the Online Sales Simplicity and Small Business Relief Act of 2018.

Sales Tax Holiday Season is Here

With sales tax holiday season right around the corner, now is a good time to look at how sales tax holidays work and examine the different types of holidays that states offer.

Remote Seller Resources

Comprehensive list of resources for remote sellers following the South Dakota v. Wayfair Supreme Court decision – including state notices, videos, articles, training opportunities, and more.

U.S. Supreme Court Issues Decision In South Dakota v. Wayfair

On June 21, 2018, the U.S. Supreme Court issued its decision in the South Dakota v. Wayfair case, ruling in favor of South Dakota and overturning Quill’s physical presence rule.

Iowa Enacts Changes to Definition of Manufacturer and Manufacturing

Iowa has enacted narrowing legislation that makes changes to the terms “Manufacturer” and “Manufacturing” for purposes of the state’s manufacturing exemption.

Iowa Expands Tax Base to Include Specified Digital Products

Iowa has enacted legislation that subjects specified digital products and services to state sales and use tax with exemptions for use by commercial enterprises.

Iowa Enacts Remote Seller Nexus Provisions

Iowa Governor Kim Reynolds has signed legislation containing extensive remote seller nexus provisions, effective January 1, 2019.

Iowa Issues Notice About New Water Service Excise Tax

The Iowa Department of Revenue has provided guidance regarding the state’s new Water Service Excise Tax (WET) that takes effect on July 1, 2018.

South Dakota v. Wayfair Analysis & Predictions: Sales Tax Experts Weigh-In

Sales tax experts lend their insight into and predictions for one of the most important U.S. Supreme Court decisions regarding sales tax in decades, South Dakota v. Wayfair.

Multistate Tax Commission Updates Its Uniform Sales & Use Tax Exemption Certificate

The Multistate Tax Commission (MTC) revised its Multijurisdictional Uniform Sales & Use Tax Exemption/Resale Certificate on January 22, 2018 to reflect two state changes.

Record Number of Sellers Participate in 2017 MTC Amnesty Program

The volume of applicants for the 2017 online marketplace seller tax amnesty program overwhelmed the Multistate Tax Commission.

Multistate Tax Commission Announces Tax Amnesty Program for Online Sellers

The MTC organized a tax amnesty program for online sellers, running from August 17 to November 1, 2017. The voluntary disclosure program allowed sellers to start remitting sales tax on future sales without penalty or liability for unpaid, prior accumulated sales tax in 25 participating states.

No Regulation Without Representation Act of 2017 Introduced

Under the proposed House bill, a state may tax or regulate a person’s activity in interstate commerce only when the person is physically present in the state during the period in which the tax or regulation is imposed.

Congress Introduces Marketplace Fairness Act of 2017 and Remote Transactions Parity Act of 2017

Introduced on April 27, 2017, the Marketplace Fairness Act of 2017, if enacted, would authorize states meeting certain requirements to require remote sellers that do not meet a small seller exception to collect their state and local sales and use taxes.

Iowa Adopts Amendments to Regulations for Manufacturing Exemption

Effective November 16, 2016, the Iowa Department of Revenue adopted amendments to its regulations concerning the state’s manufacturing exemption, which was expanded to include replacement parts and supplies earlier in the year.