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.