How 2023 Sales Tax are calculated in Iowa

The state general sales tax rate of Iowa is 6%. In addition to the state-level sales tax, cities and municipalities in Iowa have the authority to levy their own sales tax rates. These local rates can add up to 1%, resulting in a combined maximum sales tax rate of 7% in certain regions.

Every 2023 combined rates mentioned above are the results of Iowa state rate (6%), the county rate (0% to 1%), the Iowa cities rate (0% to 1%), and in some case, special rate (0% to 1%).

Variations by Purchase Type

Iowa's sales tax rate may vary depending on the type of purchase. Examples of taxable categories may include:

• Consumer use tax
• Rental tax
• Sales tax
• Sellers use tax
• Lodgings tax

Iowa state rate(s) for 2023

Lowest possible rate: 6% (e.g., Ankeny, Iowa)

Highest possible rate: 7% (, Iowa)
Average combined rate across Iowa: 6.944%

Other 2023 sales tax Facts for Iowa