Iowa Sales Tax Calculator
Calculate the exact sales tax for any purchase in Iowa. Get instant breakdowns of state, county, and city taxes. Updated with current 2026 rates.
IA Base State Rate: 6% (up to 7% combined)
Black Hawk
Total Amount
$107.00
$100.00 + $7.00 tax
Tax Components
Iowa Sales Tax Highlights
Iowa has a 6% state sales tax
Most counties add 1% local option tax
Groceries and clothing are exempt
Maximum combined rate is 7%
Iowa Sales Tax FAQ
What is Iowa's sales tax rate?
Iowa has a 6% state sales tax. Most counties add a 1% local option sales tax, for a typical combined rate of 7%.
Iowa Sales Tax Rate Structure in 2026
Iowa imposes a 6% state sales tax on most retail transactions. Counties may impose a Local Option Sales Tax (LOST) of 1%, which must be approved by voter referendum. The vast majority of Iowa's 99 counties have adopted the 1% LOST, making 7% the effective rate in most areas. The maximum combined rate in Iowa is 7%.
The simplicity of Iowa's local tax — a single 1% option with no city-level additions — makes it one of the easier states for compliance. There are only two possible rates: 6% (state only) or 7% (state + county).
| Area | State Rate | County LOST | Combined Rate |
|---|---|---|---|
| Des Moines (Polk Co.) | 6% | 1% | 7% |
| Cedar Rapids (Linn Co.) | 6% | 1% | 7% |
| Davenport (Scott Co.) | 6% | 1% | 7% |
| Waterloo (Black Hawk Co.) | 6% | 1% | 7% |
| Iowa City (Johnson Co.) | 6% | 1% | 7% |
Tax-Exempt Items and Special Rules in Iowa
Iowa provides generous exemptions for everyday essentials. Both groceries (food for home consumption) and clothing are exempt from Iowa sales tax. Prescription drugs are also exempt. These three exemptions together significantly reduce the sales tax burden on Iowa families.
| Category | Taxable? | Notes |
|---|---|---|
| Groceries (unprepared food) | Exempt | All food for home consumption |
| Clothing | Exempt | All clothing and footwear exempt |
| Prepared food / restaurants | Yes | Taxed at full rate |
| Prescription drugs | Exempt | All prescription medications |
| Over-the-counter medicine | Yes | Non-prescription drugs are taxable |
| Farm machinery | Exempt | Equipment used in agricultural production |
| Manufacturing equipment | Exempt | Machinery for manufacturing operations |
Iowa also exempts agricultural machinery, equipment, and replacement parts used directly in farming. This is a significant exemption given Iowa's position as a leading agricultural state. Industrial machinery and equipment used in manufacturing and processing are similarly exempt.
Filing and Compliance for Iowa Sales Tax
The Iowa Department of Revenue (IDR) administers both state and local sales taxes. Businesses register for a sales tax permit (free) through the IDR's eFile & Pay system. Filing frequency is based on annual liability: monthly (over $1,200/year), quarterly ($120–$1,200), or annually (under $120).
Iowa adopted economic nexus effective January 1, 2019, requiring remote sellers with more than $100,000 in sales or 200 transactions to Iowa customers to collect and remit sales tax.
| Filing Detail | Requirement |
|---|---|
| Economic nexus threshold | $100,000 in sales or 200 transactions |
| Marketplace facilitator rule | Yes — effective February 1, 2019 |
| Filing frequency | Monthly, Quarterly, or Annual |
| State agency | Iowa Department of Revenue (IDR) |
| Late filing penalty | 5% per month on unpaid tax (up to 25%) |
| Sourcing method | Destination-based |
Iowa is a member of the Streamlined Sales Tax (SST) agreement. Businesses can register through the SST system for Iowa and all other member states simultaneously. Iowa's simple rate structure (only two possible combined rates) makes it straightforward for multi-state sellers.
Related Calculators
Official References
This calculator uses current sales tax rates based on official sources:
- Iowa Department of Revenue
Official Iowa tax authority
Tax rates are updated regularly but may change. Always verify current rates with local tax authorities for official transactions.