Iowa sales tax at a glance
| Type of tax | Sales and use tax |
|---|---|
| State rate | 6% |
| Local rates | Average 0.94%, highest 1.00% |
| Average combined rate | 6.94% |
| Groceries | ExemptFood and food ingredients are exempt from state and local option tax. Candy, soft drinks, prepared food and dietary supplements are taxable. |
| Prescription drugs | ExemptPrescription drugs are exempt from Iowa sales tax. |
| Clothing | Taxed (August holiday, $100 cap)Clothing is taxed, except articles under $100 during the holiday on the first Friday and Saturday of August. |
Local averages are population-weighted figures from the Tax Foundation: State and Local Sales Tax Rates, Midyear 2026 (rates as of 1 July 2026). They are a guide, not the rate at any one address. For the exact rate where you buy, use the Iowa Tax Mapper (Iowa Department of Revenue).
Worked examples
An $800 mattress in Des Moines (7%)
| Rate | 6% state + 1% local = 7% |
|---|---|
| Price before tax | $800.00 |
| Sales tax | $56.00 |
| Total | $856.00 |
Working: $800.00 × 7% = $56.00. Des Moines levies the 1% local option tax, giving the usual Iowa rate of 7%. A mattress is not clothing, so the August holiday would not help.
Working back from a $107.00 total at 7%
| Rate | 6% state + 1% local = 7% |
|---|---|
| Price before tax | $100.00 |
| Sales tax | $7.00 |
| Total | $107.00 |
Working back: $107.00 ÷ 1.07 = $100.00, so the tax was $7.00. Divide by 1.07 to find the $100 price. In a place without the local option tax, divide by 1.06 instead.
The local option sales tax
Iowa's only general local sales tax is the local option sales tax, set at 1% in most, but not all, jurisdictions. It applies to sales tax, not to use tax, so an out-of-state purchase you owe use tax on is taxed at the 6% state rate only. Because there is a single possible local rate, most Iowa receipts show 7%. The Iowa Tax Mapper from the Department of Revenue shows whether an address is in a jurisdiction with the local option tax.
Groceries and the clothing holiday
Food and food ingredients bought to eat at home are exempt from both the state tax and the local option tax. Candy, soft drinks, prepared food and dietary supplements are taxable. Iowa's sales tax holiday falls on the first Friday and Saturday of August; in 2026 that was 7 and 8 August. Clothing and footwear priced under $100 per article are exempt from state and local option tax during those two days.
Iowa vs. neighboring states
| State | State rate | Avg. combined | Groceries |
|---|---|---|---|
| Iowa | 6% | 6.94% | Exempt |
| Minnesota | 6.875% | 8.14% | Exempt |
| Wisconsin | 5% | 5.72% | Exempt |
| Illinois | 6.25% | 8.98% | No state tax; local 1% may apply |
| Missouri | 4.225% | 8.44% | 1.225% state + full local |
| Nebraska | 5.5% | 6.98% | Exempt |
| South Dakota | 4.2% | 6.11% | Taxed (full rate) |
Average combined rates are from the Tax Foundation, midyear 2026 report. See sales tax rates for every state for the full table.