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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.

Your Guide to Sales Tax in the Midwest

To catch you up and cut down your research time, we’ve compiled some of the essential Midwestern sales tax trends for 2024 that you need to know.

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.

Economic Nexus State by State Chart

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.

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.

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.

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 Remote Seller Nexus Provisions

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

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.

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.

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.

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.

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.