Iowa Sales Tax

The rules and regulations regarding Iowa sales tax or sales tax in Iowa are monitored and implemented by the Iowa Department of Revenue (IDR). In Iowa, the state sales tax is charged at the rate of 5%.

The state sales tax in Iowa is charged on the gross amount of receipt generated from sale of personal tangible properties and other listed services. The funds, which are collected by way of state sales tax in Iowa, are distributed through the State General Fund.

However, the following items are exempted from imposition of sales tax in Iowa:

Sale of specific food items

Medical equipments

Industrial and agricultural equipments

Computers and accessories

Prescription drugs

In Iowa, the local option taxes are clubbed with the state sales tax rate. In addition to the collection of sales tax in Iowa, the Department of Revenue also performs the collection of an accompanying use tax on purchases, which have been made outside the state of Iowa.

The local option taxes in Iowa can be categorized into the following types:

• The regular local option tax
• The school infrastructure local option tax

The counties in Iowa impose these local option taxes. An election is held for the selection of the mode of local option tax by the voters.

Iowa Department of Revenue also offers a number of online services to the sales tax payers. With the help of these services, the sales tax payers are able to file their sales tax returns and make payments of sales taxes in a truly convenient manner. They are the following:

• E-file: Online sales tax return filing service
• EPay or direct debit: Online sales tax payment service

The due dates for filing state sales tax returns and payment of sales taxes in Iowa are dependent on the taxable amount and they are collected on a monthly, half-monthly, quarterly or annual basis.

Contact Details:

Iowa Department of Revenue (IDR)

Hoover Building
Taxpayer Services/4th Floor
1305 E. Walnut
Des Moines, Iowa 50319
Tel: 515-242-6226