Iowa Sales Tax Calculator

If your business sells physical products or certain types of services, you will need to collect and pay sales tax. In Iowa, the first step is visiting the revenue department website and registering for sales tax in order to acquire a seller’s permit, or sales tax permit. 

Use our Sales Tax Calculator to determine your exact sales tax rate and total purchase amount. 

What Products and Services Are Subject to Sales Tax in Iowa?

Sales of tangible personal property are subject to sales tax in Iowa. Taxable services include the repair of most tangible property, carpet cleaning, dry cleaning, moving, and a host of other services you can find here. Most groceries are tax exempt in Iowa, as are most medical devices and prescription medications. 

Iowa Sales Tax Rate

The state sales tax rate in Iowa is 6%.

Iowa sales tax rates vary depending on which county and city you’re in. Check Iowa Department of Revenue site for the exact rates.

How to Register for Iowa Sales Tax

In Iowa, acquire a seller’s permit by following the Department of Revenue’s detailed instructions for registration: 

1. Go to the Connect Iowa website.
2. Register for an account.
3. Fill out the business registration form.
4. There is no fee to apply for a seller’s permit in Iowa.

Conclusion 

In Iowa, and across the country, collecting sales tax is a must if you want to avoid potentially heavy fines and even closure. It’s crucial that you follow your state’s laws, and you might consider consulting with an accountant or tax attorney to make sure you’re in full compliance.