Iowa Sales Tax Guide for E-Commerce Retailers

Am I required to collect sales tax in Iowa?

Businesses that have an employee, location (including inventory in a warehouse), or who do other business in the state are required to register for a sales tax permit and collect sales tax from buyers in Iowa. 

E-commerce businesses with economic nexus in Iowa are also required to register and collect.

You have economic nexus in Iowa if you made more than $100,000 in sales to buyers in the state in the previous or current calendar year.

How to Register for a Iowa Sales Tax Permit

Register for a Iowa sales tax permit online at the Iowa Department of Revenue.

Need help? Contact us for help with your Iowa sales tax registration.

How to Collect Iowa Sales Tax

Iowa is a destination-based sales tax state. This means that when making a sale to a buyer in Iowa, you charge the combined state + local sales tax rate of the buyer’s ship-to address.

Learn more about origin and destination-based sales tax sourcing here.

Learn more about how to collect the right amount of state plus local sales tax here.

Is shipping taxable in Iowa?

No, as long as the shipping charges are separately stated on the invoice then the shipping charges your customers pay to transport the item are not taxable in Iowa.

Learn more about sales tax on shipping charges here.

Iowa Sales Tax Due Dates

Iowa sales tax is due the last day of the month filing the end of the filing period. For example, say you are a quarterly sales tax filer. For the quarterly period spanning April 1 through June 30, 2025, you’d be required to file and remit sales tax by July 31, 2025.

How to File Sales Tax in Iowa

When your Iowa sales tax due date rolls around, you can either file yourself online or let a partner like HOST take this onerous task off your plate. 

Learn more about handing off your sales tax filings to HOST here!

More about Iowa Sales Tax

Learn more about Iowa sales tax at the Iowa Department of Revenue.