Iowa state sales tax rate
The base state sales tax rate in Iowa is 6.00%. Many services taxable (info, repair, transportation). Combined 6-7%.
Average local tax adds approximately 0.94%, bringing the typical combined rate to about 6.94%.
Do services need sales tax in Iowa?
Yes — most services are subject to sales tax in Iowa. Specific exemptions exist for professional services, healthcare, and non-discretionary services. Always confirm with the Iowa Department of Revenue or your CPA for your specific industry.
Common exemptions
- Most professional services (legal, accounting)
- Custom software development
- Many freelance creative services
State rate
6.00%
Services
Taxable
Avg local add
0.94%