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Iowa Taxes

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Iowa statewide rule

Iowa's state sales tax is 6% of the sales price of tangible personal property sold at retail in the state (Iowa Code §423.2(1)); the same 6% applies to sales of gas, electricity and water service and to tickets and admissions (§423.2(2)-(3)), and a matching use tax covers goods bought elsewhere for use in Iowa. Counties and cities may add a local option sales and services tax after a favorable local election; it takes effect only on January 1 or July 1 and cannot be repealed in its first year (Iowa Code ch. 423B, §423B.6), so the total rate depends on where you buy. Groceries are exempt — see the grocery tax rule.

§ legis.iowa.gov
Verified Nov 13, 2026Reviewed
What the official source says
“There is imposed a tax of six percent upon the sales price of all sales of tangible personal”

Read on Nov 13, 2026 from legis.iowa.gov.

Checked once · Nov 13, 2026

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Every Taxes rule LawLert has for Iowa

Each rule below is the full statewide entry, with the official source it rests on and the date it was last checked.

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Iowa has a single flat individual income tax rate of 3.8% on all taxable income, for residents and nonresidents alike (Iowa Code §422.5(1)(a), "a rate of three and eight-tenths percent"). The old graduated rate table in §422.5A was repealed for tax years beginning on or after January 1, 2025. A nonresident pays the 3.8% tax computed on total income, reduced by nonrefundable credits and then multiplied by the share of net income allocated to Iowa (§422.5(1)(b)).

§ legis.iowa.govVerified Nov 13, 2026Reviewed
What the official source says
“levied, collected, and paid annually upon and with respect to the entire taxable income as defined in this subchapter at a rate of three and eight-tenths percent”

Read on Nov 13, 2026 from legis.iowa.gov.

Checked once · Nov 13, 2026

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Iowa's fuel tax on gasoline and on ethanol-blended gasoline E-10 to E-14 (gasohol) is $0.300 per gallon (30 cents) beginning July 1, 2026, unchanged from prior years. Ethanol-blended gasoline E-15 or higher, and alcohol, is taxed at $0.280 per gallon from July 1, 2026 (up from $0.265), because the E-15-or-higher distribution percentage rose into a different rate category under 2020 Senate File 2403. Undyed diesel is $0.325 per gallon. No gas-tax suspension is in effect in Iowa. The 18.4-cent federal gasoline tax is extra.

§ revenue.iowa.govVerified Nov 11, 2026Reviewed
What the official source says
“Iowa Fuel Tax Rates per gallon Fuel Type Beginning 7/1/2026 ... Gasoline $0.300 ... Ethanol Blended Gasoline E-15 or higher $0.280”

Read on Nov 11, 2026 from revenue.iowa.gov.

Checked once · Nov 11, 2026

Permitted

Iowa's annual sales-tax holiday is the first Friday and Saturday of August; in 2026 it ran August 7, 2026 through August 8, 2026: clothing and footwear under $100 per item were exempt from state sales tax and local option sales tax.

§ revenue.iowa.govVerified Oct 26, 2026Reviewed

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Iowa property tax is levied locally on the taxable value of property; there is no statewide rate. Property is valued at its actual value — its fair and reasonable market value between a willing buyer and a willing seller — and, except as the statute otherwise provides, is assessed at 100% of that actual value (Iowa Code §441.21(1)(a)-(b)). Agricultural property is valued on the basis of its productivity rather than market sales (§441.21(1)(e)). The statute's exceptions, including the statewide assessment limitation ("rollback"), can make taxable value lower than assessed value. Local levy rates differ by county, city and school district.

§ legis.iowa.govVerified Nov 13, 2026Reviewed
What the official source says
“All property subject to taxation shall be valued at its actual value which shall be entered opposite each item, and, except as otherwise provided in this section, shall be assessed at one hundred percent of its actual value”

Read on Nov 13, 2026 from legis.iowa.gov.

Checked once · Nov 13, 2026

Permitted

Groceries are exempt from Iowa sales tax: the law exempts the sales price of all sales of "food and food ingredients" (Iowa Code §423.3(57)). The exemption does NOT cover alcoholic beverages (0.5% alcohol or more), candy, dietary supplements, food sold through vending machines, prepared food, soft drinks or tobacco — those are taxed at the 6% state rate plus any local option tax. Prepared food includes food sold heated or heated by the seller (including by a caterer), along with the other categories the statute defines.

§ legis.iowa.govVerified Nov 13, 2026Reviewed
What the official source says
“a sale of “food and food ingredients” does not include a sale of alcoholic beverages, candy, or dietary supplements; food sold through vending machines; or sales of prepared food, soft drinks, or tobacco”

Read on Nov 13, 2026 from legis.iowa.gov.

Checked once · Nov 13, 2026

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