Verified April 2026
How to Calculate Sales Tax in Iowa, Iowa
2026 Step-by-Step Guide for Businesses & Consumers
Current Iowa Sales Tax Rate
| Jurisdiction | Rate |
|---|---|
| Iowa State Sales Tax | 6.000% |
| County Sales Tax | 1.000% |
| Total Combined Rate | 7.000% |
How to Calculate Sales Tax in Iowa
-
1
Find the combined rate
The combined sales tax rate in Iowa is 7.000%. This equals: Iowa state rate of 6.000% + County 1.000%.
-
2
Convert the percentage to a decimal
7.000 ÷ 100 = 0.0700
-
3
Multiply by your purchase amount
Example: $100.00 × 0.0700 = $7.00 in sales tax
-
4
Add tax to the original price
$100.00 + $7.00 = $107.00 total cost
What's Taxable in Iowa?
Most tangible personal property is taxable in Iowa. Check with the
Iowa Department of Revenue for specific exemption categories.
Do You Have Nexus in Iowa?
Economic Nexus Threshold
If your business has over $100,000 in annual
Iowa sales or 200 transactions,
you are required to collect and remit Iowa sales tax. This applies to out-of-state remote sellers too.
Expert Sales Tax Tips for Iowa
Out-of-State Sellers
Selling into Iowa from out of state? Register before you cross the $100,000 threshold to avoid back taxes and penalties.
Frequently Asked Questions
Sales Tax Calculator
Using 7.000% rate for Iowa
$
Tax Amount
$0.00
Total with Tax
$100.00
Rate applied: 7.000% combined