Iowa sales tax at a glance
Iowa's typical combined rate of 6.94% ranks 29th highest among the 50 states.
What sales tax adds at the register
At the average combined rate of 6.94%:
| Price | Sales tax | Total |
|---|---|---|
| $25 | $1.74 | $26.74 |
| $100 | $6.94 | $106.94 |
| $500 | $34.70 | $534.70 |
| $2,000 | $138.80 | $2,138.80 |
Iowa vs. the national average and its neighbors
The average combined state-and-local sales tax across the 50 states is about 6.66%. Iowa's 6.94% is 0.28 points above that — on a $30,000 car, about $84 more than the national average buyer pays. Combined with a 3.8% flat income tax, that shapes how Iowa funds itself — see the Iowa paycheck calculator for the payroll side.
Border shopping is real: here's what the same purchases cost across state lines, at each state's average combined rate.
| State | Combined rate | Tax on $250 | Tax on $30,000 |
|---|---|---|---|
| Iowa | 6.94% | $17.35 | $2,082 |
| Wisconsin | 5.72% | $14.30 | $1,716 |
| South Dakota | 6.11% | $15.28 | $1,833 |
| Nebraska | 6.98% | $17.45 | $2,094 |
| Minnesota | 8.14% | $20.35 | $2,442 |
| Missouri | 8.44% | $21.10 | $2,532 |
| Illinois | 8.98% | $22.45 | $2,694 |
Vehicle purchases are usually taxed by the state where the car is registered, not where it's bought — so the car column shows the rate you'd owe as a resident, not a border-shopping opportunity.
Reading a Iowa receipt
A Iowa receipt typically shows tax as a single line at the combined rate, even though the money is split between the state and one or more local jurisdictions. To check a receipt: multiply the taxable subtotal by 0.0694 (the 6.94% average) — if the tax line is meaningfully higher, you're in a locality above the average, up to 7%; if lower, some items were exempt (groceries and prescriptions are exempt or reduced in most states). The reverse mode on the calculator above recovers the pre-tax price from any total.
Frequently asked questions
+What is the sales tax in Iowa in 2026?
Iowa's state sales tax is 6%. Cities, counties and districts add local taxes averaging 0.94% (population-weighted), for a typical combined rate of 6.94% — and up to 7% in the highest-tax localities.
+How do I calculate Iowa sales tax backwards from a total?
Divide the total by 1 plus the rate as a decimal. At 6.94%, a $106.94 total means a $100.00 price and $6.94 tax. Choose "Total after tax (reverse)" above to do it automatically.
+Do online orders charge Iowa sales tax?
Yes. Since the Wayfair decision, large online sellers must collect Iowa sales tax based on your delivery address — the same state and local rate you'd pay in a store.
+How much is sales tax on a $30,000 car in Iowa?
About $2,082 at the 6.94% average combined rate ($1,800 at the 6% state rate alone). Vehicle tax is generally assessed by your state of registration and collected when you title the car; some states cap or exempt private-party sales.
+How does Iowa's sales tax compare nationally?
Iowa's 6.94% average combined rate ranks 29th highest of the 50 states, versus a national average of about 6.66%.
+Is the rate the same everywhere in Iowa?
No. Local rates vary by city and county, from 6% (state only) up to about 7%. Use a recent receipt or your state revenue department's lookup for your exact address.
Rates as of July 1, 2026, from state revenue departments compiled by the Tax Foundation; local averages are population-weighted. Product exemptions (groceries, clothing, medicine) vary by state. Estimates only — see our terms.