Iowa Sales Tax Calculator (2025)

Find up-to-date Iowa sales tax rates for 2025. The state rate is 6.00%, local add-ons up to 1.00%, with an average combined rate around 7.00%. Includes exemptions and breakdowns for major cities.

Iowa applies a statewide sales tax of 6%, with an optional 1% local sales tax in most jurisdictions. The total rate typically reaches 7% in cities that have adopted the local option tax.

Iowa Sales Tax Calculator

Enter a purchase amount — this calculator uses the average combined rate for Iowa.

Rate
7.00%
Tax
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Total
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The average combined rate in Iowa is 7.00%. Local city rates may vary by ZIP code.

Overview of Iowa Sales Tax

Iowa’s sales tax applies to most tangible goods and some services. Local governments may add a 1% option, which voters often approve for infrastructure, schools, or city services.

Comparison With Neighboring States

Nebraska averages around 7.1%, Minnesota 7.5%, and Illinois up to 10.25%. Iowa’s 7% average is moderate by comparison.

Business Tax Information

Businesses must register with the Iowa Department of Revenue to collect and remit sales tax. Filing frequency depends on total taxable sales.

FAQs for Iowa

What is Iowa’s state sales tax rate?

6% statewide, with up to 1% local option tax.

What’s the average total rate?

7% in most cities.

How are local option taxes approved?

Local voters must approve them via referendum.

Are groceries taxed?

Most groceries and prescription drugs are exempt from sales tax.