Iowa Sales Tax Calculator 2026 — 6% Rate
Calculate Iowa sales tax on any purchase instantly. The state sales tax rate is 6%, and the average combined rate (state + local) is 6.94%. Enter your purchase amount to see state tax, local tax, and the total amount due — all calculated privately in your browser.
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 2026-08-04.
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 average combined rate across all jurisdictions in Iowa is 6.94%, according to Tax Foundation 2026 data. 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 6.94% for an average estimate, or enter the exact local rate from your receipt or the Iowa Department of Revenue website. Example: a $200 purchase at the 6.94% combined rate = $13.88 in tax = $213.88 total.
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%. Because roughly 94% of Iowa jurisdictions have adopted LOST, the practical checkout rate in nearly every populated area is 7%, not the 6.94% statewide average. Rates for Iowa's largest cities in 2026:
- Des Moines — 7.00% (6% state + 1% LOST)
- Cedar Rapids — 7.00%
- Davenport — 7.00%
- Sioux City — 7.00%
- Iowa City — 7.00%
- Ames — 7.00%
- A small number of unincorporated pockets that never passed LOST — 6.00% (state only)
No manual adjustment is needed any more: the calculator above defaults to the City with 1% LOST — 7.00% option, which is the exact rate in every city on this list, and the state-only 6.00% and statewide-average 6.94% options are there for the rare jurisdictions that need them. 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 Sales and Use Tax Guide for the current rules and the jurisdiction lookup. Updated 2026-08-04.
Tips for Accurate Sales Tax Calculations
Always confirm the exact local rate for your specific city or county — the combined average (6.94%) 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. The Iowa Department of Revenue sets the holiday on the first Friday and Saturday of August, 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 inside the window generally qualifies even if it ships later. Full rules: Iowa Department of Revenue. Updated 2026-08-20.
Frequently Asked Questions
What is the sales tax rate in Iowa?
The Iowa state sales tax rate is 6%. When combined with local county and city taxes, the average rate across Iowa is 6.94% (Tax Foundation 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 average combined (state + local) sales tax rate in Iowa is 6.94%. The state portion is 6%; the remainder comes from county and municipal taxes that vary by location.
How do I calculate sales tax in Iowa?
Multiply the purchase price by the rate. For state tax only: price × 0.0600. For the average combined rate: 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, Iowa City, and Ames. Only a few unincorporated areas that never adopted LOST stay at the 6% state-only rate.
Why is the average Iowa rate 6.94% when my receipt says 7%?
6.94% is a population-weighted statewide average that includes the small number of jurisdictions with no Local Option Sales Tax. Since the local option is capped at 1% and most jurisdictions have adopted it, almost every real checkout in Iowa is exactly 7.00%. Use the state-only option and add 1% if you want the exact figure for a LOST city.
When is the Iowa sales tax holiday?
It runs on the first Friday and Saturday of August, 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.