Iowa has a combined state and local sales tax rate of 6.94%, ranking #26 nationally.
The Iowa state sales tax rate is 6.00%. Local governments in Iowa add an average of 0.94% on top, bringing the typical combined rate to 6.94%.
If you sell online and have nexus in Iowa, you must collect 6.94% sales tax from buyers in Iowa.
Most states exempt groceries, prescription drugs, and medical devices from sales tax. Iowa may have additional exemptions. Always verify with the Iowa Department of Revenue.
Property taxes, state income taxes, and deductions affect your federal return. Get clear, plain-English tax briefs from CapitalTaxBrief.com.