Invoicing in Iowa

Built-in handling of IA sales tax (6% state rate) and statutory late fees.

State sales tax
6.00%
Late fee max
1.5%/mo
Metros covered
8
Written contract req.
No

Iowa compliance at a glance

  • Sales tax: 6.00% state rate. Many services taxable (info, repair, transportation). Combined 6-7%.
  • Late fees: Up to 1.5% per month. (Iowa Code §535.2) Default 5%/yr; contract rates up to 21%/yr.
  • Prompt-pay law: Iowa Prompt Payment Act (Iowa Code §573.12 for construction; §8A.514 for state). Public construction: 30 days for partial payments; subs paid within 7 days of GC receiving payment.

Iowa metros

Iowa guides