The Iowa state sales tax rate is 6.0% in 2026. When county and city taxes are added, the combined rate ranges from 6.0% in areas with no local additions up to 7.0% in the highest-taxed jurisdictions. The most populated areas of Iowa — including Polk County — have a combined rate of 7.0%.
Iowa eliminated sales tax on groceries in 2023, making food purchases tax-free statewide. The state has a relatively straightforward tax structure with modest local additions.
💡 Quick Reference: $100 purchase in Iowa at the average combined rate costs approximately $106.50 after tax. Use the calculator above to find the exact amount for any county or city in Iowa.
Groceries in Iowa are exempt from Iowa sales tax since 2023. Clothing purchases are taxable at full rate. Prescription drugs and medical devices are generally exempt from sales tax in Iowa, as they are in most US states.
Common Iowa Sales Tax Exemptions
💊
Prescription Medicine
Prescription drugs are fully exempt from Iowa sales tax.
🌾
Grocery Food
Unprepared groceries are exempt from Iowa sales tax since 2023 in Iowa.
🏭
Manufacturing Equipment
Equipment used directly in manufacturing is generally exempt.
🌱
Agricultural Supplies
Seeds, livestock, and farm feed are generally exempt in Iowa.
👕
Clothing
Clothing is taxable at full rate in Iowa.
📚
Textbooks
Textbooks for educational use are often exempt or reduced rate.
How Does Iowa Sales Tax Work?
Sales tax in Iowa is collected at the point of purchase by retailers and remitted to the Iowa Department of Revenue. The total rate you pay is the sum of the Iowa state rate (6.0%) plus any applicable county and city rates in your location.
Businesses with a physical presence in Iowa — including offices, warehouses, or employees — have sales tax nexus and must collect and remit Iowa sales tax. Since the 2018 Supreme Court ruling in South Dakota v. Wayfair, remote sellers with $100,000+ in Iowa annual sales or 200+ Iowa transactions must also register and collect Iowa sales tax even without a physical presence.
📅 Iowa Sales Tax Filing: Returns are typically due on the 20th of the month following the reporting period. Filing frequency (monthly, quarterly, or annual) is assigned by the Iowa Department of Revenue based on your sales volume. File and pay online through the Iowa state tax portal.
The Iowa state sales tax rate is 6.0% in 2026. With county and city additions, combined rates range from 6.0% to 7.0% depending on your location. The most common combined rate in populated Iowa counties is around 6.5%. Use the calculator above to find the exact rate for your specific county and city.
Groceries in Iowa are exempt from Iowa sales tax since 2023. This applies to unprepared food items purchased at grocery stores. Prepared food (restaurant meals, hot food from a deli counter) is generally taxed at the full combined rate regardless of state grocery exemptions.
To calculate Iowa sales tax, multiply your purchase amount by the combined rate (as a decimal). For example, a $200 purchase in Polk County at 7.0%: $200 × 0.70 = $14.00 in sales tax, making the total $214.00. Or simply use the free Iowa sales tax calculator at the top of this page.
Yes, if you meet Iowa’s economic nexus threshold. Remote sellers must collect and remit Iowa sales tax if they have $100,000 or more in Iowa sales or 200+ separate Iowa transactions in a calendar year. This applies to all online sellers including Amazon FBA sellers, Shopify stores, and marketplace sellers. Marketplace facilitators like Amazon, Etsy, and eBay collect and remit on behalf of their sellers in Iowa.
Most services are not subject to Iowa sales tax, which primarily applies to the sale of tangible personal property. However, certain services are taxable in Iowa — including some digital services, repair services, and services that are inseparable from a taxable product. Consult the Iowa Department of Revenue or a tax professional for guidance on specific service types.
The highest combined sales tax rate in Iowa is 7.0%, which occurs in areas with the maximum local tax additions on top of the 6.0% state base rate. The lowest rate is the state base rate of 6.0% in areas with no local taxes. See the county-by-county table above for the exact rate in each area of Iowa.