For the majority of taxable purchases, Iowa levies a state sales tax of 6%. Some items are, nevertheless, exempt from Iowa’s sales tax. These consist of: 1. foods and food: In Iowa, the majority of foods and food items are exempt from sales tax. This includes foods like dairy products, bread, veggies, fruits, meat, and other produce. Sales tax, however, applies to prepared dishes and meals served in dining establishments. 2. Prescription medications: In Iowa, prescription medications are exempt from sales tax. Brand-name and generic medications that have been prescribed by a qualified healthcare professional fall under this category. 3. Medical supplies and equipment: In Iowa, any medical supplies or equipment that are utilized to treat a medical condition are exempt from sales tax. This includes things like wheelchairs, oxygen tanks, and crutches.
4. Clothing: Clothing is not subject to sales tax in Iowa. Items like shirts, pants, dresses, and shoes fall under this category. However, some accessories, such belts, handbags, and jewelry, are subject to sales tax. Inputs used in agriculture, such as seeds, fertilizer, and animal feed, are not subject to sales tax in Iowa.
Des Moines, Iowa, charges a 6% sales tax, which is the same as the state average. Local governments in Iowa, however, are permitted to tack on their own sales taxes on top of the state’s. The overall sales tax rate in Des Moines is 7%; the local sales tax rate is 1%.
There is a tie for the state with the lowest sales tax, with Alaska, Delaware, Montana, New Hampshire, and Oregon taking the top spot. Although certain local governments may still levy their own local sales taxes, these states do not have a state sales tax.
Contrarily, California, which has a combined state and local sales tax rate of 9.47%, is the state with the highest sales tax. Arkansas (9.53%), Tennessee (9.47%), and Louisiana (9.545%) are further states with high sales tax rates.
Lastly, the state sales tax in Iowa is 6% for the majority of taxable items; however, several items are excluded from the tax, such as food and groceries, prescription medications, medical devices and supplies, apparel, and agricultural inputs. Des Moines’ sales tax rate is 7%, and Iowa’s state tax rate for 2021 is 6%. While some jurisdictions do not impose a state sales tax, others, such as California, do so at a total rate of up to 9.47%.