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Iowa Sales Tax Calculator

Disclaimer: All rates and figures on this page are estimates for general informational purposes only and are not financial, tax, or legal advice. Sales tax rates change and vary by city, county, and the type of item purchased. Verify current rates with the Iowa Department of Revenue before relying on these figures, and consult a qualified tax professional for specific guidance.

Calculate sales tax on any purchase in Iowa. The state sales tax rate is 6%, and when combined with the average local rate of 0.94%, the total average in Iowa comes to 6.94%. Actual rates vary by city and county.

Iowa Sales Tax Rates

State Rate
6%
Avg Local Rate
0.94%
Combined Average
6.94%

Quick Reference

Iowa replaced its nine graduated brackets with a single flat 3.8% individual income tax effective in 2025.

State income tax: 3.8% top rate

How Iowa's Sales Tax Stacks Up

At 6.94% combined (state plus average local), Iowa's sales tax ranks 29th-highest nationally — below the national median of 7%.

The 6% state rate does most of the work in Iowa, with local jurisdictions adding an average of 0.94%.

Combined state-plus-local averages nearby: Illinois (8.98%); Minnesota (8.135%); Missouri (8.445%); Nebraska (6.98%); South Dakota (6.11%). South Dakota has the lowest nearby rate at 6.11%.

Iowa Sales Tax Table

Quick reference for common purchase amounts at the 6.94% combined average rate:

Purchase Price Sales Tax Total
$10 $0.69 $10.69
$25 $1.74 $26.73
$50 $3.47 $53.47
$100 $6.94 $106.94
$250 $17.35 $267.35
$500 $34.70 $534.70
$1,000 $69.40 $1069.40
$2,500 $173.50 $2673.50
$5,000 $347.00 $5347.00

Understanding Iowa Sales Tax

Sales tax in Iowa is collected at the point of sale on most tangible goods and some services. The state portion of 6% is uniform statewide, while local jurisdictions may add their own rates, averaging 0.94% across the state. Certain items like groceries and prescription medications may be exempt or taxed at reduced rates.

When budgeting in Iowa, remember that sales tax affects your purchasing power. With a median home value of $181,400 and a property tax rate of 1.52%, understanding all taxes helps you make informed financial decisions.

What Is and Is Not Taxed in Iowa

Unprepared groceries are exempt from Iowa state sales tax — candy, soft drinks and vending-machine food are taxable.

Prescription medicines are exempt in Iowa, as they are in every state that levies a sales tax; over-the-counter drugs and most medical supplies are treated separately and are frequently taxable.

Out-of-state sellers must register and collect Iowa tax once they cross the state's economic nexus threshold, a rule that follows from the 2018 Supreme Court decision in South Dakota v. Wayfair. Below that threshold, the buyer technically owes use tax instead.

Related Iowa Calculators

Frequently Asked Questions

What is the sales tax rate in Iowa? +
The Iowa state sales tax rate is 6%. With the average local sales tax of 0.94%, the combined rate is approximately 6.94%. Actual rates vary by city and county — some localities charge higher or lower local rates.
How do I calculate Iowa sales tax on a purchase? +
Multiply the pre-tax price by the applicable tax rate as a decimal. For example, on a $100 purchase at the combined 6.94% rate: $100 x 0.0694 = $6.94 in tax, for a total of $106.94. Our calculator handles this automatically for any amount.
Are groceries taxed in Iowa? +
Unprepared groceries are exempt from Iowa state sales tax — candy, soft drinks and vending-machine food are taxable. Prepared meals, restaurant food and hot deli items are treated as taxable sales rather than groceries and carry the full 6.94% combined rate wherever they are bought.
Does Iowa charge sales tax on online purchases? +
Yes. Since the 2018 Supreme Court ruling in South Dakota v. Wayfair, Iowa requires out-of-state online retailers that meet economic nexus thresholds to collect and remit Iowa sales tax. This means most online purchases are subject to the same 6% state rate plus applicable local taxes.
What items are exempt from Iowa sales tax? +
Prescription medicines are exempt. Unprepared groceries are exempt from Iowa state sales tax — candy, soft drinks and vending-machine food are taxable. Clothing is taxable in Iowa, unlike in the handful of states that exempt apparel. Sales to exempt organisations, most services, and resale purchases made with a valid Iowa resale certificate are also outside the tax. The Iowa Department of Revenue publishes the authoritative exemption list.
How much do local governments add to Iowa sales tax? +
On average, cities and counties add 0.94% on top of the 6% state rate, bringing the typical combined rate to 6.94%. Your exact rate depends on where the purchase is made.
Is Iowa a high sales tax state? +
Iowa's 6.94% combined average ranks 29th-highest nationally, below the national median of 7%. For the full picture, the state also taxes wages at a flat 3.8%.
How does Iowa sales tax compare with neighboring states? +
Rates change the moment you cross a border. Combined state-plus-local averages for nearby states: Illinois (8.98%); Minnesota (8.135%); Missouri (8.445%); Nebraska (6.98%); South Dakota (6.11%) — versus 6.94% in Iowa. South Dakota is the cheapest nearby option at 6.11%.

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