The Iowa (IA) state sales tax rate is currently 6.0%. Depending on local municipalities, the total tax rate can be as high as 7%. Food and prescription drugs are exempt from sales tax.

All businesses selling tangible personal property or engaging in retail sales must register with the state. Iowa is a Streamlined Sales Tax state. Businesses selling into multiple states may register with the Streamlined Sales Tax Project.

How to Register                                            

All sellers making retail sales of taxable goods or services in Iowa can register through the SST portal or directly with the Iowa Department of Revenue.

Anyone selling taxable goods or services from an Iowa location must obtain a sales tax permit. A sales tax permit must be obtained for each Iowa business location.

See the Sales and Use Tax information booklet for more information.

How to File and Pay

To file and pay taxes with Iowa, entities can go online with the Iowa Department of Revenue, or utilize the e-pay program.

Deadlines

Iowa businesses are required to file and pay taxes on the 5th OR the 25th of the month depending on the deadline assigned by the Iowa Department of Revenue. See the deadline chart for more information.

Avalara Sales and Use Tax Products for Iowa

AvaTax – AvaTax is a powerful, online sales tax compliance solution that provides all businesses with a level of sales tax automation that until now has been available only to Fortune 500 companies. AvaTax’s transaction-based service model and seamless integration into business applications gives you rapid access to all jurisdiction assignments and real-time sales tax calculations. Cutting-edge technologies and superior processing logic can manage even the most complicated tax issues, such as situs, nexus, tax tiers, tax holidays, exemptions, certificate management and product taxability rules.

TrustFile - Avalara TrustFile provides detailed sales tax reporting for online sellers. Allowing businesses to know exactly where, when and how much to file. Ecommerce business owners can use TrustFile to determine whether or not they are collecting the right amount of sales tax in each individual state, and then store a record of their sales tax history securely in the cloud for free.

Iowa Department of Revenue