Iowa sales tax rates (July 1, 2026)
| Rate | |
|---|---|
| State sales tax | 6% |
| Average local sales tax | 0.94% |
| Combined average | 6.94% |
| Highest combined rate | 7% |
Iowa's combined average rate ranks #29 highest of the 50 states and Washington, DC.
Sales tax on common amounts in Iowa
| Price | Sales tax | Total |
|---|---|---|
| $10 | $0.69 | $10.69 |
| $25 | $1.74 | $26.74 |
| $50 | $3.47 | $53.47 |
| $100 | $6.94 | $106.94 |
| $500 | $34.70 | $534.70 |
| $1,000 | $69.40 | $1,069.40 |
How to calculate Iowa sales tax
Multiply the price by the rate as a decimal. At 6.94%, tax on a $100 purchase is 100 × 0.0694 = $6.94, for a total of $106.94. To find the price before tax from a total, divide by 1.0694.
Iowa vs. neighboring states
| State | State rate | Combined average |
|---|---|---|
| Iowa | 6% | 6.94% |
| Minnesota | 6.88% | 8.14% |
| Wisconsin | 5% | 5.72% |
| Illinois | 6.25% | 8.98% |
| Missouri | 4.23% | 8.45% |
| Nebraska | 5.5% | 6.98% |
| South Dakota | 4.2% | 6.11% |
Frequently asked questions
What is the sales tax rate in Iowa?
The state rate is 6%. With local taxes, the average combined rate is 6.94% and can reach 7% in some places.
Do cities and counties in Iowa charge sales tax?
Yes. Local rates average 0.94% and go as high as 1%, so the total depends on where you buy.
Is shopping cheaper in a state next to Iowa?
Among neighboring states, Wisconsin (5.72%) and South Dakota (6.11%) have a lower average combined rate. If you live in Iowa, you may still owe use tax on items you bring home.
Is sales tax charged on everything?
No. States set their own rules, and many exempt or reduce tax on groceries, prescription drugs, or other items. Check the state revenue department for a specific product.