The formulas
- Sales tax = sale x (6% + local rate)
- Nexus when counted sales are at least $100,000 in the current or prior calendar year
- Counted sales = direct sales + marketplace sales
How it works
Figures current as of November 2026.
The state rate is 6 percent. The tool multiplies the sale amount by the statewide base rate plus the local rate you enter (local option sales tax for the delivery address) and shows the state and local parts separately. The local rate depends on where the goods are delivered.
A seller with no physical presence in Iowa must register and collect once it has at least $100,000 of gross revenue from Iowa sales, including exempt and resale sales in the current or prior calendar year. Sales you make through a marketplace facilitator count toward your own Iowa threshold, together with your direct sales.
A seller with a physical presence in Iowa, such as staff, an office or inventory, must collect regardless of the threshold. The tool does not decide whether a product is taxable or exempt; enter the taxable price.
Illustrative figures only. Check the result against your firm's methodology before relying on it.
Common questions
What is the Iowa sales tax rate?
The state rate is 6 percent. Local rates are added on top by delivery address.
What is the Iowa economic nexus threshold?
At least $100,000 of gross revenue from Iowa sales, including exempt and resale sales in the current or prior calendar year.
Do marketplace sales count toward the Iowa threshold?
Sales you make through a marketplace facilitator count toward your own Iowa threshold, together with your direct sales.
Sources
- Iowa Department of Revenue, Sales & Use Tax Guide
- Iowa Department of Revenue, Remote Sellers & Marketplace Facilitators
Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.