Iowa Sales Tax (2026)
Iowa's state sales tax is 6%, and the average combined rate with local taxes is 6.94%.
Iowa sales tax at a glance
| State rate | 6% |
|---|---|
| Average local rate | 0.94% |
| Average combined rate | 6.94% |
| Highest local add-on | 1% |
| Groceries | Exempt (candy, soft drinks, prepared food taxable) |
| Clothing | Taxable (August holiday: clothing/footwear under $100) |
| Vehicles | Not subject to sales tax; one-time registration fee of 5% of price plus $10 instead (no local option tax) |
Sales tax on common purchases (6.94%)
| Price | Tax | Total |
|---|---|---|
| $20 | $1.39 | $21.39 |
| $100 | $6.94 | $106.94 |
| $500 | $34.70 | $534.70 |
| $1,000 | $69.40 | $1069.40 |
| $30,000 | $2082.00 | $32082.00 |
Sources: taxfoundation.org · revenue.iowa.gov · revenue.iowa.gov
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 local add-ons can reach 1%.
Are groceries taxed in Iowa?
Exempt (candy, soft drinks, prepared food taxable)
Is clothing taxed in Iowa?
Taxable (August holiday: clothing/footwear under $100)
How are car purchases taxed in Iowa?
Not subject to sales tax; one-time registration fee of 5% of price plus $10 instead (no local option tax)