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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 Sales Tax Rates
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.
Remote Seller Nexus Rules
CLICK-THROUGH NEXUS

1/1/2019
AFFILIATE NEXUS

6/11/2013 and 1/1/2019
REPORTING REQUIREMENTS

1/1/2019
ECONOMIC NEXUS

1/1/2019 – see state notice
MARKETPLACE NEXUS

1/1/2019
Sales Tax Holidays
Annual Back to School Holiday

August 2-3, 2024

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

Inactive

Amnesty Filing Dates

July 1, 2012 - November 1, 2013

Go to Iowa Amnesty Page
AMNESTY INCLUSION PERIODS

TAX TYPES AND CONDITIONS

Unclaimed Property
AMNESTY BENEFITS

Waiver of interest and penalties.

Administration Information
Streamlined Sales Tax Status

Full Member
NUMBER OF TAXING AUTHORITIES

1,002 Sales Tax Jurisdictions

HOME RULE AUTHORITIES

N/A
Sales Tax Sourcing (Intrastate)

Destination
Sales Tax Return Due Date

Last day of the month following the reporting period
Exemption Information
RESALE CERTIFICATE

Iowa Resale Certificate
TYPES OF EXEMPTIONS

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
HISTORY

  • 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.
FUN FACTS
  • 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.

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.

Online Sales Simplification Act of 2016 Discussion Draft is Introduced

The proposed legislation would implement a “hybrid origin” approach for remote sales. States could impose sales tax on remote sales if the origin state participates in a clearinghouse.

No Regulation Without Representation Act of 2016 Introduced

Taking the opposite approach of the Marketplace Fairness Act and Remote Transactions Parity Act, the proposed bill would limit the ability of states to require remote sellers to collect use tax. However, the bill failed to pass.

Iowa Makes Changes to Manufacturing Exemption

Iowa modified sales tax exemptions for items used in manufacturing, effective 03/21/16. More…

Congress Approves Permanent Extension of Internet Tax Freedom Act

Congress approved a permanent extension of the Internet Tax Freedom Act, signed into law by the President 02/24/16. More…

Internet Tax Freedom Act Extended Through October 1, 2016

The President signed an act to extend the Internet Tax Freedom Act through 10/01/16. More…

Internet Tax Freedom Act Extended Until December 11, 2015

U.S. House of Representatives passed a provision to extend the Internet Tax Freedom Act until 12/11/15. More…

House Introduces Remote Transactions Parity Act of 2015

U.S. House of Representatives introduced the Remote Transactions Parity Act of 2015 on 06/15/15. More…

Senate Introduces Marketplace Fairness Act of 2015

On March 10, 2015, a bipartisan group of senators introduced the Marketplace Fairness Act of 2015.

Internet Tax Freedom Act Extended Until October 1, 2015, Permanent Extension Introduced

On December 16, 2014, President Barack Obama signed an act including a provision that extends the Internet Tax Freedom Act until October 1, 2015.

Internet Tax Freedom Act is Extended through December 11, 2014

President Barack Obama has signed federal legislation extending the Internet Tax Freedom Act through December 11, 2014.

Iowa Ends “”Sales by County”” Reporting Requirement

Effective July 1, 2014, Iowa taxpayers are no longer required to report \”Sales by County\” information.

SST Best Practices Matrix on Deal of the Day Vouchers

The Streamlined Sales and Use Tax (SST) Governing Board has issued a best practices matrix which provides answers to whether the state follows the best practices set forth in the SST Agreement regarding deal-of-the-day vouchers. All SST Member states are…

Iowa Amends Definition of Dietary Supplement

Iowa has amended the statutory definition of \”dietary supplement\” to keep the state in compliance with the Streamlined Sales Tax Agreement.

New Federal Digital Goods and Services Bill Proposed

Representative Lamar Smith (Republican, Texas) has introduced a bill to bar multiple taxes on digital goods and services. Smith had proposed an earlier bill which failed to pass. This bill is a revised version of the earlier bill. The proposed…

Iowa Enacts Affiliate Nexus Provisions

Iowa has enacted affiliate nexus provisions for sales and use tax purposes, effective June 11, 2013.

Federal Government Introduces New Remote Seller Bill

The federal Marketplace Fairness Act of 2013 was introduced in the House of Representatives and the Senate on February 14, 2013.

Iowa Announces Electronic Payment Option

Iowa has announced a new partnership with the Dwolla payment network to provide Iowa taxpayers with an electronic payment option for tax payments.