Iowa Sales Tax Calculator 2026 — 6% Rate

Calculate Iowa sales tax on any purchase instantly. The state sales tax rate is 6%, and the statewide average combined rate (state + local) is 6.94% (Tax Foundation, rates as of July 1, 2026). Enter your purchase amount to see state tax, local tax, and the total amount due — all calculated privately in your browser.

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The Iowa sales tax calculator is a free, browser-based tool that works out state and local sales tax on any purchase amount for Iowa shoppers and small businesses. Iowa charges 6% statewide, and most cities add a 1% local option tax for a 7% checkout rate. Updated 2026-10-07.

Iowa Sales Tax Rate: State vs Combined

The Iowa state sales tax rate is 6%. However, most shoppers pay more than the state rate because counties and cities add their own local taxes on top. The statewide average combined rate in Iowa is 6.94% (Tax Foundation, rates as of July 1, 2026). This means a $100 purchase could cost between $106.00 (state only) and more in high-tax localities.

What Is and Isn't Taxed in Iowa

Iowa exempts most unprepared grocery items from state sales tax, which helps reduce the cost of essential food purchases. Clothing and footwear are not generally exempt in Iowa — they are taxed at the full combined rate all year, with one exception: the annual sales tax holiday on the first Friday and Saturday of August, when clothing under $100 an item is exempt. Prescription drugs are also exempt from sales tax in Iowa.

How to Calculate Iowa Sales Tax

To calculate Iowa sales tax: multiply the purchase price by the applicable rate. For the state rate only: price × 6% = tax. For the combined rate: use 7% where the 1% local option tax applies and 6% where it does not; 6.94% is only the statewide average. Example: a $200 purchase at the 6.94% combined rate = $13.88 in tax = $213.88 total.

Iowa Tax-Free Weekend 2026: What the Sales Tax Holiday Actually Covers

Iowa runs a two-day sales tax holiday on the first Friday and Saturday of August (August 7–8 in 2026), running 12:01 a.m. Friday to midnight Saturday. During it, no state or local option tax is charged on eligible clothing and footwear — so the saving in a LOST city is the full 7%, not 6%.

To price a purchase outside the holiday window, run it through the calculator above at 7.00%; during the holiday an eligible item's tax is simply zero. Full eligibility rules are on the Iowa Department of Revenue sales tax holiday page.

Iowa Does Not Charge Sales Tax on Cars — It Charges a Fee for New Registration

This trips up almost every Iowa car buyer using a sales tax calculator. A vehicle subject to registration is exempt from the 6% sales tax and from LOST. Instead Iowa charges a fee for new registration of $10 plus 5% of the purchase price under Iowa Code §321.105A, paid to the county treasurer when you apply for the new registration and title.

Two practical consequences. First, do not price a car through the calculator above at 7.00%: on a $28,000 vehicle the fee is $1,410, while the 7.00% retail rate would suggest $1,960 — a $550 overstatement. Second, because it is charged at Iowa registration rather than at the point of sale, buying across the line in Nebraska, Missouri or Illinois does not avoid it, and the new registration receipt is not issued until it is paid. Updated 2026-10-07.

Iowa Sales Tax Rate by City in 2026

Iowa's 6% state rate is uniform, but the Local Option Sales Tax (LOST) is voted on jurisdiction by jurisdiction and is capped at 1%. On the Iowa Department of Revenue's list effective July 1, 2026, 1,070 of 1,136 cities and unincorporated county areas (94%) impose LOST, so the checkout rate in most of the state is 7%, not the 6.94% statewide average (Tax Foundation, rates as of July 1, 2026). Rates for Iowa's largest cities:

No manual adjustment is needed any more: the calculator above defaults to the City with 1% LOST — 7.00% option, which is the rate in every city named above, the state-only 6.00% option covers jurisdictions without LOST, and the 6.94% statewide average is there for planning only. A reverse mode is also available if you have a receipt total and need the pre-tax price. LOST is imposed at the local level and administered by the state — see the Iowa Department of Revenue Local Option Sales Tax page for the current jurisdiction list and the address lookup. Updated 2026-10-07.

Tips for Accurate Sales Tax Calculations

Always confirm the exact local rate for your specific city or county — the combined average (6.94%, Tax Foundation, July 2026) is a statewide mean and may differ from your actual checkout rate. Large purchases like vehicles, appliances, or electronics are where the difference between state-only and combined rates matters most. Keep receipts that show the tax rate used; this helps verify correct tax was charged and supports any refund claims for exempt purchases. If you are making a business purchase, check whether your state offers a sales tax exemption certificate to avoid paying tax on resale items.

Iowa Sales Tax on Cars: A 5% Fee for New Registration, Not Sales Tax

Do not use the rate above for a vehicle. Iowa exempts vehicles subject to registration from ordinary sales tax and charges a separate levy instead. Iowa Code §321.105A imposes a "fee for new registration" of ten dollars plus five percent of the purchase price on each vehicle, payable to the county treasurer when you apply for the new registration and title — the receipt is not issued until it is paid. So a $28,000 car costs $1,410 in fee for new registration ($10 + $1,400), not the $1,960 you would get by applying the 7.00% retail rate. The fee also applies to leases, where the statute treats the lessor as the owner. Because the fee is charged at registration in Iowa, buying across the border in Nebraska or Missouri does not avoid it. Updated 2026-08-28.

Iowa Sales Tax Calculator in Reverse: Back Out Tax From a Total

Switch Calculation Mode to "Remove tax from a total (reverse)" when you already know what you paid and need the pre-tax price — the figure expense reports and Iowa sales-tax returns actually ask for. The formula is pre-tax price = total ÷ (1 + rate), not total minus the rate. That distinction matters: at the 7.00% Des Moines rate, a $107.00 receipt divides to $100.00 pre-tax plus $7.00 tax, but subtracting 7% of $107.00 wrongly gives $99.51 and leaves you 49 cents short. The error scales with the receipt, which is why it shows up most often on large equipment purchases. Reverse mode applies the correct formula and still splits out the 6% state share from the 1% local option share, so you can report each separately. Updated 2026-08-28.

Iowa Sales Tax Holiday: Clothing Under $100 Free of Tax

Iowa taxes clothing all year, which makes its one annual exemption worth planning around. Iowa holds the holiday on the first Friday and Saturday of August (August 7–8 in 2026), beginning "at 12:01 a.m. on the first Friday in August and ending at 12:00 am midnight the following day." During that window "no sales tax or local option sales tax will be collected on sales of an article of clothing or footwear having a selling price less than $100.00" — note that both the 6% state rate and the 1% local option rate come off, so the saving in a LOST city is the full 7.00%. Three details decide whether a purchase qualifies. The limit is per item, not per basket: four $80 jackets are all exempt, one $120 coat is fully taxable, and there is no partial exemption on the first $100. The definition covers "any article of wearing apparel and typical footwear intended to be worn on or about the human body," which excludes watches, jewellery, umbrellas, sporting equipment, skis and roller blades, along with clothing or footwear "designed primarily for athletic activity or protective use and not usually considered appropriate for everyday wear" — so running shorts usually qualify while cleats and shin pads do not. And the holiday applies to the sale, not the delivery, so an online order placed and paid for inside the window qualifies even if it is delivered later. Full rules: Iowa Department of Revenue. Updated 2026-10-07.

Look Up the Local Option Rate for Your Exact Address

Iowa's local option sales tax is adopted jurisdiction by jurisdiction, not county-wide, so a county is rarely uniform — one city inside it can impose the local option while the unincorporated area next door does not. That matters most for two groups: delivery, because Iowa sources the sale to where the buyer receives the goods rather than where the seller sits, and anyone near a city boundary, where a street address a block away can carry a different rate. A jurisdiction may enact the local option tax on January 1 or July 1, which is why a rate that was right six months ago can be wrong now. The authoritative address-level lookup and the current list of imposing jurisdictions are published by the Iowa Department of Revenue.

Practical rule for using the calculator: for an in-store purchase use the store's address, and for anything delivered use the delivery address — not your billing address.

Last updated: October 2026. Sources: Iowa Department of Revenue — Sales & Use Tax Guide; Iowa Department of Revenue — Local Option Sales Tax jurisdictions effective July 1, 2026; Iowa Department of Revenue — Annual Sales Tax Holiday; Iowa Code §321.105A; Tax Foundation, State and Local Sales Tax Rates, Midyear 2026 (July 2026).

Frequently Asked Questions

What is the sales tax rate in Iowa?

The Iowa state sales tax rate is 6%. Most cities and counties add a 1% local option sales tax, and the statewide average combined rate is 6.94% (Tax Foundation, rates as of July 1, 2026).

Does Iowa tax groceries?

Iowa exempts most unprepared grocery items from state sales tax, which helps reduce the cost of essential food purchases.

Is clothing taxed in Iowa?

Yes. Unlike Minnesota or Pennsylvania, Iowa taxes clothing and footwear at the full combined rate — 7.00% in most cities — for the whole year. The one exception is Iowa's annual sales tax holiday on the first Friday and Saturday of August, when any article of clothing or footwear with a selling price under $100.00 is exempt from both state and local option sales tax.

What is the combined sales tax rate in Iowa?

The statewide average combined (state + local) sales tax rate in Iowa is 6.94% (Tax Foundation, rates as of July 1, 2026). The state portion is 6%; the remainder is the 1% local option sales tax, which applies in most but not all jurisdictions.

How do I calculate sales tax in Iowa?

Multiply the purchase price by the rate. For state tax only: price × 0.0600. Where the 1% local option tax applies: price × 0.0700. At the 6.94% statewide average: price × 0.0694. Example: $50 × 0.0694 = $3.47 tax, total $53.47.

What is the sales tax rate in Des Moines, Iowa?

Des Moines charges 7.00% total sales tax in 2026 — the 6% Iowa state rate plus the 1% Local Option Sales Tax (LOST). The same 7.00% applies in Cedar Rapids, Davenport, Sioux City, Ames and, since July 1, 2026, Iowa City. Jurisdictions without LOST stay at the 6% state-only rate — the Iowa Department of Revenue list effective July 1, 2026 shows 66 of them, including Ankeny and the unincorporated parts of Polk and Johnson counties.

Why is the average Iowa rate 6.94% when my receipt says 7%?

6.94% is the Tax Foundation population-weighted statewide average (rates as of July 1, 2026), which includes the jurisdictions with no Local Option Sales Tax. The local option is 1% wherever it applies, so a real checkout in Iowa is either 7.00% or 6.00% — never 6.94%. Pick the 7.00% option for a jurisdiction with LOST and the 6.00% option for one without.

When is the Iowa sales tax holiday?

It runs on the first Friday and Saturday of August — August 7–8 in 2026 — from 12:01 a.m. on the Friday to midnight at the end of the Saturday. Clothing and footwear priced under $100.00 per item are exempt from both the 6% state rate and the 1% local option tax, so the saving is the full 7.00% in most Iowa cities.

Does the Iowa sales tax holiday $100 limit apply per item or per receipt?

Per item. Four separate $80 jackets are all exempt, but a single $120 coat is fully taxable — there is no partial exemption on the first $100. Watches, jewellery, umbrellas, sporting equipment and gear designed primarily for athletic or protective use are excluded from the holiday even when they cost less than $100.

Does Iowa charge sales tax when I buy a car?

No. Vehicles subject to registration are exempt from Iowa sales tax and instead pay a fee for new registration of $10 plus 5% of the purchase price, set by Iowa Code §321.105A. You pay it to the county treasurer when you apply for the new registration and title, and the receipt is not issued until it is paid. On a $28,000 car that is $1,410, not the $1,960 the 7.00% retail rate would suggest. Buying in Nebraska or Missouri does not avoid it, because the fee is charged at Iowa registration.

How do I work out the pre-tax price from an Iowa receipt?

Divide the total by 1 plus the rate — do not subtract the percentage. At the 7.00% Des Moines rate a $107.00 total divides to $100.00 pre-tax plus $7.00 tax, whereas subtracting 7% of $107.00 gives $99.51 and leaves you 49 cents short. Set Calculation Mode on this page to ‘Remove tax from a total (reverse)’ and the calculator applies the correct formula, splitting the 6% state share from the 1% local option share.

Do I owe Iowa tax on something I bought online or out of state?

Usually yes. If the seller did not collect Iowa tax, you owe use tax at the 6% state rate; Iowa has no local option use tax. Anyone who owes less than $1,200 of use tax a year and has no sales and use tax permit can report it on the Iowa Non-Permit Use Tax Return; above that you must register for a permit. Sellers with $100,000 or more of sales into Iowa must collect Iowa tax at checkout, so check the order confirmation before paying twice.

Is restaurant and prepared food taxed in Iowa?

Yes, at the full combined rate — 7.00% in most Iowa cities. The grocery exemption covers unprepared food only, so a rotisserie chicken, a deli sandwich or anything sold heated or with eating utensils provided is taxable, while the raw ingredients from the same store are exempt. Candy and soft drinks are also taxable in Iowa despite being sold in the grocery aisle.

Is the local option sales tax the same everywhere in an Iowa county?

No. Iowa's local option is adopted by individual jurisdictions, so cities within one county can differ from each other and from the unincorporated area. Always check the specific address rather than assuming a county-wide rate.

Which address sets the Iowa rate on a delivered order?

The address where the buyer receives the goods. Iowa sources delivered sales to the destination, so an order shipped to a different city than your billing address takes that destination's local option rate.