Iowa Reverse Sales Tax Calculator.

Iowa has a state sales tax rate of 6%, and most Iowa cities and counties add a 1% local option sales tax (LOST) on top, making the most common combined rate in Iowa 7%. As of 2026, the majority of Iowa's population lives in counties and cities that have adopted the 1% local option tax, though a few areas remain at the 6% state-only rate.

Iowa's local option sales tax system is voter-driven — local jurisdictions can adopt the 1% LOST through a ballot referendum. Revenue from the LOST is used for local government services, property tax relief, or other designated purposes. Des Moines, Cedar Rapids, Davenport, and most of Iowa's larger cities have adopted the additional 1%.

Iowa exempts food for home consumption from sales tax entirely — both at the state level and for most local option taxes. Iowa is one of the more comprehensive states when it comes to grocery exemptions. Prescription drugs are also fully exempt. Certain agricultural inputs (seed, fertilizer, farm machinery, livestock) are exempt. Iowa has relatively broad manufacturing exemptions as well for equipment and materials used in production.

The Iowa Department of Revenue administers the state and local option sales taxes together. Iowa requires monthly filing for sellers with annual tax liability over $600, quarterly for those with $1-$600 annually, and annual filing for those below $150. Iowa is an SST (Streamlined Sales Tax) member state, simplifying multi-state compliance.

Iowa has a destination-based sales tax sourcing system. Economic nexus kicks in at $100,000 in Iowa sales annually. Iowa does not have a transaction count threshold (unlike some other states).