Sales Tax for Iowa (2026)
Iowa (IA) Key Facts
State Sales Tax Rate
6%
Has State Sales Tax
Yes
Local Taxes May Apply
Yes
Tax Type
Sales and use tax
How This Calculator Works in Iowa
This calculator estimates the Iowa sales tax on your purchase amount using the state rate of 6%. Enter your purchase price to see the tax amount and total cost.
Iowa Overview
Iowa levies a 6% state sales tax, and most counties add a 1% local option tax, making 7% the typical combined rate. Groceries and prescription drugs are exempt, and the state holds an annual back-to-school tax holiday in August. Iowa taxes a broader range of services than most states.
How Iowa Compares
Iowa's sales tax rate of 6% compares to Minnesota at 6.875% and Wisconsin at 5%. Combined with local rates, the effective sales tax burden varies by location.
| State | Top Rate | Notes |
|---|---|---|
| Minnesota | 6.875% | Minnesota has a sales tax rate of 6.875%. |
| Wisconsin | 5% | Wisconsin has a sales tax rate of 5%. |
| Illinois | 6.25% | Illinois has a sales tax rate of 6.25%. |
Iowa's sales tax rate of 6% compares to a national average of approximately 5.10%. This is above the national average.
Tips for Iowa Residents
- 1Iowa's 6% state sales tax combines with a 1% local option tax in most cities, bringing the typical combined rate to 7%.
- 2Groceries and prescription drugs are exempt from Iowa sales tax.
- 3Iowa holds a two-day sales tax holiday in August for clothing and footwear priced under $100 per item.
- 4Most services are taxable in Iowa, including lawn care, pet grooming, and dry cleaning — Iowa taxes a broader range of services than many states.
- 5Iowa's local option tax is levied at the county level and applies to most cities within the adopting county.