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Iowa

Sales Tax Rules

6%
State Rate
7%
Max Combined
Taxable
SaaS
$100k
Nexus Threshold

Full Tax Details

State Sales Tax Rate6%
Max Combined Rate7%
Economic Nexus (Sales)$100,000
Economic Nexus (Transactions)N/A
SaaS TaxableYes
Digital Goods TaxableYes
Groceries ExemptYes
Clothing ExemptNo
Filing FrequencyMonthly, Quarterly, or Annual
Online FilingAvailable

SaaS Tax Details

SaaS and digital services are subject to the 6% flat rate.

Grocery Details

Unprepared food for human consumption is exempt.

Official Source

Iowa Department of Revenue

View Official Site →

Last verified: 2026-03-26 · Always confirm current rates with your tax advisor before filing.