Estimate only - not tax advice. Methodology and sources.
Iowa Sales Tax
State + average local combined rate, category exemptions, and how it compares to neighbors.
State rate
6.00%
Average combined (state + local)
6.94%
Iowa vs neighboring states
5.43%
6.41%
6.94%
6.97%
8.05%
8.38%
8.88%
WI
SD
IA
NE
MN
MO
IL
Category exemptions
| Category | Rule | Detail |
|---|---|---|
| Groceries | Exempt | Unprepared food at grocery stores. |
| Clothing | Taxed (full rate) | Everyday apparel and footwear. |
| Prescription drugs | Exempt | Prescribed medications dispensed by a licensed pharmacist. |
Iowa sales tax holiday
Annual Sales Tax Holiday
When: First Friday-Saturday in August
Items: Clothing & footwear < $100/item
Example: $100 purchase
- State sales tax only: $6.00
- Combined (state + average local): $6.94
- Total with combined tax: $106.94
Major cities in Iowa
| City | Combined rate | vs state avg |
|---|---|---|
| Des Moines | 7.00% | +0.06% |
| Cedar Rapids | 7.00% | +0.06% |
| Davenport | 7.00% | +0.06% |
| Sioux City | 7.00% | +0.06% |
| Iowa City | 7.00% | +0.06% |
Border shopping - vs neighboring states
For larger purchases, driving to a neighbor with lower combined rate can save real money.
Common questions
- What is the sales tax rate in Iowa?
- Iowa levies a 6.00% state sales tax. With local taxes added, the statewide average combined rate is 6.94%. Actual rate at the register depends on your city and county.
- Does Iowa tax groceries?
- Groceries are exempt from state sales tax in Iowa. Hot or prepared food typically remains taxable.
- Does Iowa have a sales tax holiday?
- Yes. Iowa runs Annual Sales Tax Holiday first friday-saturday in august. Eligible items: clothing & footwear < $100/item.
- Who collects sales tax in Iowa?
- The Iowa Department of Revenue collects state-level sales tax; counties and cities add local rates that are remitted through the same return. Out-of-state sellers shipping to Iowa must collect if they exceed economic nexus thresholds (typically $100k in sales or 200 transactions).
Full data sources and formulas: /sources.
Estimate only - not tax advice. Local rates vary by city and county - your actual rate at the register may differ from the state average. Category-specific exemptions (groceries, prescription drugs, clothing) and tax holidays change by year; check the Iowa DOR for current rules. All states →
Last reviewed: · Reviewed by kgenots, Editor · editorial policy