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Iowa sales tax, explained.

Thresholds, rates, taxability, filing schedules, and the Iowa Department of Revenue — everything a remote seller needs to know about Iowa, on one page.

Economic nexus threshold
$100,000
Statewide base rate
6%
Transaction threshold
None
Des MoinesCedar RapidsDavenportSioux CityIowa City
Iowa · major filing jurisdictions
Nexus · Iowa

When you owe sales tax in Iowa.

Either kind of nexus on its own creates the obligation to register, collect, and remit. Iowa measures gross sales only — there is no transaction-count test, and Iowa repealed its 200-transaction threshold.

Economic nexus
Threshold
$100,000 in gross sales delivered into Iowa
Measurement type
Sales only — Iowa eliminated its transaction-count test
Measurement period
Previous or current calendar year
Included
Gross sales into Iowa, including exempt and marketplace sales
Marketplaces
Iowa does not exclude marketplace-facilitator sales from the threshold calculation — all sales through any channel count toward the $100,000 test
Physical nexus
Office or place of businessEmployees / remote staffInventory · warehouse · 3PLAgents or independent contractorsConstruction or installation projects

Any physical presence in Iowa — including a single remote employee working from home or inventory stored at a third-party Iowa fulfillment center — creates nexus immediately, regardless of sales volume.

Rates · Iowa

What you'll collect, city by city.

Iowa's statewide rate is 6%. Many counties and cities impose an additional 1% Local Option Sales Tax (LOST), so the combined rate at most Iowa addresses is 7%. The rate depends on the delivery address.

JurisdictionCombined rateTangible propertyDigital goodsSaaSServices
IowaStatewide base rate6%6%6%6%0%
Des Moines7%7%7%7%0%
Cedar Rapids7%7%7%7%0%
Davenport7%7%7%7%0%
Sioux City7%7%7%7%0%
Iowa City6%6%6%6%0%

Iowa City does not levy a Local Option Sales Tax, so its combined rate equals the 6% state rate. Most other Iowa cities with a LOST apply a 7% combined rate. Rates verified as of June 11, 2026.

Need the exact rate for one address or invoice? Our calculator returns the combined state and local option rate for any Iowa address.

Open the sales tax calculator
Taxability · Iowa

Is your product taxable here?

Iowa taxes tangible goods, digital products, and — uniquely — consumer SaaS, while generally exempting B2B software and most services.

Product categoryStatusWhat to know
Tangible personal propertyTaxablePhysical goods delivered into Iowa are taxable at the combined rate of the delivery address.
SaaS & cloud softwarePartialB2C SaaS (sales to consumers) is taxable in Iowa. B2B SaaS (sales to businesses) is exempt. The buyer's status determines which rule applies.
Digital goodsTaxableElectronically delivered digital products — including downloads, e-books, streaming media, and digital games — are subject to Iowa sales tax.
Professional servicesNot taxableConsulting, legal, accounting, and similar professional services are generally exempt from Iowa sales tax.
General servicesNot taxableMost general services are exempt in Iowa unless specifically enumerated as taxable by Iowa Code.
Filings · Iowa

Filing schedules and due dates.

The Iowa Department of Revenue assigns your filing frequency through GovConnectIowa based on your projected tax liability. Returns are due even for periods with zero taxable sales.

FrequencyReturnDue dateWho it applies to
MonthlyMost commonIowa Sales/Use/Excise Tax Return (GovConnectIowa)Last day of the month following the reporting periodSellers with larger Iowa tax liabilities, as assigned by the Department
AnnualIowa Sales/Use/Excise Tax Return (GovConnectIowa)January 31 for the prior calendar yearSmall sellers with low annual Iowa tax liability

Crossed the threshold, or about to?

A Commenda expert will review your Iowa exposure, register you with the Iowa Department of Revenue through GovConnectIowa, and take over the filing calendar — usually within a week.

The state authority

Iowa Department of Revenue — Iowa's tax office.

The Iowa Department of Revenue administers sales and use tax through GovConnectIowa, its single online portal for registration, filing, and payment. One login covers everything — no separate local portals.

govconnect.iowa.gov

Registration requires your Tax Portal username and password. A State Tax ID (format X-XX-XXXXX) is assigned after registration and used for subsequent filings.

What you can do there
  • Register for a sales tax permit

    Register through GovConnectIowa. Iowa issues a permit at no charge; out-of-state sellers register as remote sellers.

  • File returns and pay

    All returns, amendments, and payments are submitted through GovConnectIowa — ACH or card accepted.

  • Look up the rate for any address

    The Iowa Department of Revenue provides a rate lookup tool to find the combined state and local rate for any Iowa delivery address.

  • Verify an exemption certificate

    Confirm that a customer's Iowa permit or exemption certificate is valid before honoring an exemption claim.

Exposure & exemptions · Iowa

If you're behind, or your buyers are exempt.

Back-period exposure & voluntary disclosure

Iowa participates in the Multistate Tax Commission's voluntary disclosure program, allowing out-of-state sellers to come forward and limit lookback exposure before the state contacts them.

Lookback
Typically 3 years under a VDA — longer if the state initiates contact first
Penalties
Generally waived under the voluntary disclosure program
Interest
Still due on unpaid tax — not waived under the program
Unfiled returns
No statute of limitations runs until a return is filed; coming forward proactively limits exposure

Exemption certificates accepted

Collect a valid certificate at the time of sale and retain it — Iowa places the burden of proof on the seller to support exempt sales.

Resale
Iowa Sales Tax Exemption Certificate (Iowa Form 31-014) for purchases for resale
Multi-state
MTC Uniform Sales & Use Tax Certificate accepted; Iowa is a member of the Streamlined Sales Tax (SST) program
Manufacturing / industrial
Qualifying manufacturing equipment and supplies used directly in production may be exempt under Iowa Code
Nonprofit / government
Qualifying nonprofits and government entities may purchase exempt using Iowa's certificate process

FAQ · Iowa

Iowa questions, answered.

The questions remote sellers ask us most about Iowa.
Read our FAQ library

Iowa's economic nexus threshold is $100,000 in gross sales delivered into Iowa in either the current or preceding calendar year. There is no transaction-count test — Iowa repealed its 200-transaction threshold.

It depends on the buyer. B2C SaaS — software sold to consumers — is taxable in Iowa. B2B SaaS — software sold to businesses — is exempt. You need to determine each customer's status at the time of sale to apply the correct treatment.

Yes. Iowa taxes electronically delivered digital products, including downloads, streaming media, e-books, and digital games, at the same rate as tangible personal property.

No. Iowa uses a sales-only test: $100,000 in gross sales into the state. The state repealed its 200-transaction threshold, so the number of transactions is irrelevant — only dollar volume matters.

Iowa's statewide rate is 6%. Many cities and counties impose an additional 1% Local Option Sales Tax (LOST), bringing the combined rate to 7% in most Iowa jurisdictions. Iowa City, for example, does not levy a LOST and remains at 6%.

Yes. Iowa does not exclude marketplace-facilitator sales from the economic nexus calculation. Sales through Amazon, eBay, or any other marketplace platform count toward the $100,000 threshold alongside your direct sales.

Registration is handled through GovConnectIowa at govconnect.iowa.gov. You will create a Tax Portal account, provide your business details, and receive a State Tax ID in the format X-XX-XXXXX once approved.

Yes. Commenda monitors your Iowa exposure, registers you with the Iowa Department of Revenue through GovConnectIowa, calculates the correct rate on every transaction, and files each return on the assigned schedule. Book a call to see it on your own data.

United States

Sales tax, state by state.

* No state-level sales tax. Alaska's local jurisdictions still enforce economic nexus through the ARSSTC.