Do I have to charge sales tax for online sales in Iowa?
Quick answer
Only after you cross economic nexus. Once you exceed $100,000 in sales into Iowa over 12 months, you must register with the Iowa Department of Revenue and charge the buyer's destination rate.
Iowa removed its transaction test; $100,000 in gross Iowa revenue is the only trigger.
Rule summary
How Iowa treats each category.
| Economic nexus — sales threshold | $100,000 |
|---|---|
| Transaction-count threshold | None — sales volume only |
| Marketplace facilitator collection | Required — Amazon, Etsy and eBay collect on your behalf for their sales |
| Rate to charge | The buyer's destination rate (7% in covered Iowa metros) |
| Registration authority | Iowa Department of Revenue |
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.
- Do I have to charge sales tax for online sales in Iowa?
- Only after you cross economic nexus. Once you exceed $100,000 in sales into Iowa over 12 months, you must register with the Iowa Department of Revenue and charge the buyer's destination rate.
- Do marketplace sales count toward the Iowa threshold?
- Marketplaces collect and remit for their own sales, but most states still count those sales when measuring your $100,000 threshold. Check the Iowa Department of Revenue guidance before excluding them.
- Which rate does an online seller charge in Iowa?
- Iowa sources remote sales to the delivery address, so you charge the buyer's combined state, county, city and district rate, not your own location's rate.
More Iowa guides
Other Iowa rules that change the total.