Iowa

Iowa

Standard rate: 

6% – 8 %

Reduced rate:

Sales tax-free products and services:

From 12:01 a.m. Friday through midnight Saturday, for clothing or shoes.

If selling at a price less than $100.00.

Who is obliged to register sales tax:

When you sell in Iowa and have “sufficient activity” in Iowa, you need to be registered to collect and pay sales tax in Iowa.

Threshold:

Dealers with sufficient physical or economic presence to establish nexus in Iowa must register to collect sales tax. This includes online retailers or remote sellers that meet the $100,000 or more in a current or preceding calendar year threshold.

Online Marketplaces:

If all of your sales in Iowa are through a marketplace reseller platform, you can not register for paying Iowa sales tax. Your marketplace facilitator pays the sales tax itself.

Registration procedure:

You can be registered online on the Iowa Taxes website.

Sales tax payment and filing date: 

Depending on your tax liability, determine your filing frequency – either annual, monthly or quarterly:

Annual – $0 to $10.00
Quarterly – $10.01 to $500.00
Monthly – $500.01 to $5,000.00
Monthly with Prepayment – $5,000.01 and up

Returns are always due on the 20th day of the month following the reporting period.  If the filing due date falls on a weekend or holiday, sales tax is due the next day.

Penalty and interest:

  • Late Filing – 10% of tax due
  • Late Payment – 5% of tax due

Discount: