Is there sales tax on groceries in Iowa?
Quick answer
No. Groceries bought for home preparation are exempt from Iowa state sales tax. Prepared and restaurant food is still taxable.
Food for home consumption is exempt; prepared food, candy and soft drinks are taxable.
Rule summary
How Iowa treats each category.
| Grocery food (home consumption) | Exempt from state sales tax |
|---|---|
| Prepared and restaurant food | Taxable at the full combined rate (7%) |
| Candy and soft drinks | Usually taxable even where groceries are exempt |
| Prescription medicine | Exempt |
Source: Iowa Department of Revenue · rates as published for 2026
This page summarizes the general rule. Every state writes exceptions for specific products, and local jurisdictions can differ from the state treatment. Confirm your situation with the Iowa Department of Revenue or a tax professional before relying on it for filing.
Combined rates in Iowa
What a taxable purchase actually costs in Iowa.
Frequently asked
Answers pulled from the same rule set.
- Is there sales tax on groceries in Iowa?
- No. Groceries bought for home preparation are exempt from Iowa state sales tax. Prepared and restaurant food is still taxable.
- Is prepared food taxed differently than groceries in Iowa?
- Yes. Iowa treats hot, ready-to-eat and restaurant food as a taxable retail sale even where unprepared grocery food is exempt or reduced.
- Are prescription drugs taxable in Iowa?
- No. Prescription medicine is exempt from sales tax in Iowa.
More Iowa guides
Other Iowa rules that change the total.