Sales Tax in Iowa: What’s Taxable and What’s Not

On the sale of tangible personal property, specific digital goods, and taxable services, Iowa levies a 6% statewide sales tax. Local governments have the option to impose additional sales taxes of between 0.5% and 1%, increasing the overall sales tax rate in some places to 7%. But what products in Iowa are subject to sales tax?

– Apparel and footwear priced at $100 or more per item – Digital products and services, including e-books, software, music, and movies Alcoholic beverages, tobacco products, prepared foods and drinks from restaurants and caterers, as well as automobiles, ATVs, motorbikes, and trailers. – Boats and other watercraft

– Agricultural tools and machinery

– Building supplies and materials for home renovation projects

– Furniture and home decor

– Jewelry and watches

– Toys and games

– Pet food and supplies

The following items, however, are exempt from Iowa’s sales tax: Food and beverages available in supermarkets and grocers – Prescription medications and medical supplies

– Farm inputs and machinery

– Fuel and electricity used in production or processing

– Donations to and purchases for charitable organizations

– Textbooks and educational materials

– Magazines and newspapers – Specific articles of clothes and footwear priced at less than $100 each

– Precious metals and currency

How Much Does Registration Cost in Iowa?

The price of registering a vehicle in Iowa is affected by a number of variables, including the kind and age of the vehicle, the county of domicile, and any relevant fees. For instance, a passenger automobile’s annual registration fee is $25 plus a $10 title fee. However, if the car is new, has personalized license plates, or is subject to municipal option taxes, additional fees could be charged. Similar to cars, a motorcycle’s registration charge is $20 plus a $10 title fee, however buses, trucks, and trailers could also be subject to additional fees. Does Iowa Require a Front License Plate?

Yes, according to Iowan law, a license plate must be visible on the front and rear of every motor vehicle. The license plate must be firmly attached to the car and clearly visible from at least 50 feet away. A fine of up to $65 may be assessed for failure to display a front license plate.

Depending on your situation, you could require a tax ID number if you sell things on Etsy. You might not require a tax ID number if you are selling as an individual and your sales fall below specific levels. However, you might need to register for a tax ID number with the IRS and your state if you are selling as a business or if your sales exceed the requirements. In addition, depending on where your customers are situated and the relevant tax rules, you might need to collect and submit sales tax on your Etsy sales. Should I Report My Etsy Income?

Yes, regardless of whether you receive a 1099-K form from Etsy, you must record your Etsy income on your federal and state income tax filings. Any payments made through Etsy’s platform that total more than $20,000 or 200 transactions in a calendar year must be reported to the IRS. However, even if your sales fall short of these minimums, you are still in charge of disclosing your Etsy income and covering all necessary taxes.