What is the Iowa sales tax rate?

Iowa's statewide sales and use tax rate is 6%. Counties and cities may add a local option sales tax (LOST) of up to 1%, so the maximum combined rate is 7%. Most of Iowa imposes the full 1% local option, which is why 7% is the rate most shoppers see at checkout.

What is Iowa's local option sales tax (LOST)?

The local option sales tax is an extra sales tax of up to 1% that Iowa cities and counties can adopt by voter approval. It is added on top of the 6% state rate and is used to fund local projects and property tax relief. Because so many jurisdictions impose it, the 7% combined rate is common across the state.

Are groceries taxed in Iowa?

No. Unprepared groceries (food for home consumption) are exempt from Iowa sales tax, as are prescription drugs. However, prepared food, restaurant meals, candy, soft drinks, and dietary supplements are taxable at the combined rate. Use the exempt checkbox in this calculator for grocery and prescription items.

How does remove-tax mode work?

Remove-tax mode takes a tax-inclusive total and divides it by one plus the combined rate to recover the original pre-tax price. For example, a $107 total at a 7% combined rate divides by 1.07 to give a $100 pre-tax amount and $7 of tax. This is useful for reconciling receipts or expense reports.

Is the combined rate always 7% in Iowa?

Not always. While most Iowa cities and counties impose the full 1% local option for a 7% combined rate, a few areas have not adopted it and remain at the 6% state rate. Always confirm the exact rate for the delivery or sale location, since the local option is set jurisdiction by jurisdiction.

Iowa Sales Tax Calculator — State + Local Option

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This calculator computes Iowa sales tax on any purchase, combining the 6% state rate with the local option sales tax (LOST) of up to 1%. It handles Iowa’s grocery and prescription exemptions and works in both directions — adding tax to a price or backing it out of a tax-inclusive total.

How it works

Iowa’s combined rate is the state rate plus the local option:

Combined rate = 6% state + local option (0–1%)

In add-tax mode:

Total tax = Pre-tax amount × combined rate

Total = Pre-tax amount + Total tax

In remove-tax mode it reverses the math:

Pre-tax = Total ÷ (1 + combined rate)

If you flag an item as exempt, the combined rate drops to 0% because Iowa does not tax unprepared groceries or prescription drugs.

Iowa sales tax details

Iowa pairs a 6% state rate with a voter-approved local option sales tax of up to 1%, so the everyday combined rate across most of the state — including Des Moines, Cedar Rapids, and Davenport — is 7%. Iowa exempts unprepared groceries and prescriptions, but taxes prepared food, candy, and soft drinks, which is why the exempt toggle matters when you mix grocery and snack items.

Worked example

A $100 taxable purchase in Des Moines (7% combined):

State tax = $100 × 6% = $6.00
Local option = $100 × 1% = $1.00
Total tax = $7.00, total = $107.00

Note: Local option rates are set jurisdiction by jurisdiction. A few Iowa areas remain at the 6% state rate. Verify your exact rate at the Iowa Department of Revenue before relying on these figures for filing.