Iowa Sales Tax Nexus: Economic Nexus Threshold (2026)
Iowa's economic nexus threshold for remote sellers is $100,000 in sales, measured over the current or immediately preceding calendar year. Marketplace sales count toward Iowa's threshold. Inventory or another physical presence in Iowa generally creates nexus regardless of sales. The state rate is 6%, plus local taxes.
Iowa sales tax nexus: key facts
| Sales threshold | $100,000 |
|---|---|
| Transaction threshold | None |
| Test | Sales only |
| What counts | gross revenue ($100,000 or more) from all Iowa sales of tangible personal property, services and specified digital products sourced to Iowa, including exempt sales, wholesale sales, sales for resale, and sales on which a marketplace facilitator collected tax |
| Measurement period | current or immediately preceding calendar year |
| Marketplace sales count toward your threshold? | Yes, counted |
| Marketplace facilitator law | Yes: marketplaces generally collect on the sales they facilitate |
| State rate | 6% |
| Local sales taxes | Yes, in addition to the state rate |
| Current threshold effective | July 1, 2019 |
| Recent change | None found in our research |
| Registration | Official registration page |
| Last researched | September 23, 2026 |
The state rate is the statewide state-level rate only. Local and district rates are extra where they apply.
Quick check: do you have nexus in Iowa?
Enter your Iowa sales to see whether you may have nexus.
Selling into several states? Use the full Sales Tax Nexus Checker. Your figures stay in your browser.
What to do after crossing the Iowa threshold
When it starts:
- Registration and collection timing: a remote seller that first exceeds the threshold in the current year must begin collecting Iowa sales tax and local option sales tax on the first day of the next calendar month that starts at least 30 days after it first exceeded the threshold. It must then collect through the end of that calendar year and all of the next calendar year.
- Confirm the numbers. Check your Iowa sales against the measure and period in the key facts above.
- Register before you collect. Use Iowa's official registration page. Collecting a state's tax without a registration is generally not allowed.
- Collect and file. Charge Iowa sales tax (plus any local taxes that apply at the delivery address) on taxable sales from the start date, and file returns on the schedule the state assigns. Marketplaces generally collect on the sales they facilitate, so you usually collect on your direct sales.
- Look back. If you crossed the threshold in an earlier period and did not register, get advice on those periods. Many states have voluntary disclosure programs that may limit penalties.
Physical presence and inventory in Iowa
A retailer with physical presence in Iowa (e.g., inventory in an Iowa warehouse, including FBA/3PL) must hold a permit and collect regardless of the economic threshold.
Marketplace sellers in Iowa
Do marketplace sales count toward your own threshold? Yes, counted.
Iowa counts marketplace and non-marketplace sales together toward the remote seller's $100,000 threshold. However, if all of a seller's Iowa sales go through marketplace facilitators that collect Iowa sales and local option tax, the seller does not need an Iowa permit or to file returns (for example, a seller with $200,000 of Iowa sales, all through a collecting facilitator, need not register). Facilitators must collect when their own plus facilitated Iowa sales reach $100,000 or more (Iowa Code 423.14A).
Other things to know about Iowa
- Streamlined Sales Tax full member state. Sellers can register through the SST Registration System (sstregister.org) or GovConnectIowa.
- Local option sales tax (up to 1% in most jurisdictions) must be collected by remote sellers along with the 6% state tax.
- Department of Revenue guidance has moved from tax.iowa.gov to revenue.iowa.gov.
Frequently asked questions
What is the Iowa economic nexus threshold?
$100,000 in sales, measured over the current or immediately preceding calendar year. What counts: Gross revenue ($100,000 or more) from all Iowa sales of tangible personal property, services and specified digital products sourced to Iowa, including exempt sales, wholesale sales, sales for resale, and sales on which a marketplace facilitator collected tax.
Do marketplace sales count toward the Iowa threshold?
Yes, counted. Iowa counts marketplace and non-marketplace sales together toward the remote seller's $100,000 threshold. However, if all of a seller's Iowa sales go through marketplace facilitators that collect Iowa sales and local option tax, the seller does not need an Iowa permit or to file returns (for example, a seller with $200,000 of Iowa sales, all through a collecting facilitator, need not register). Facilitators must collect when their own plus facilitated Iowa sales reach $100,000 or more (Iowa Code 423.14A).
Does FBA or 3PL inventory in Iowa create nexus?
A retailer with physical presence in Iowa (e.g., inventory in an Iowa warehouse, including FBA/3PL) must hold a permit and collect regardless of the economic threshold.
When do I have to start collecting Iowa sales tax?
Registration and collection timing: a remote seller that first exceeds the threshold in the current year must begin collecting Iowa sales tax and local option sales tax on the first day of the next calendar month that starts at least 30 days after it first exceeded the threshold. It must then collect through the end of that calendar year and all of the next calendar year.
Registration: official registration page.
Does Iowa have a transaction-count test?
No. Iowa uses only the dollar threshold.
Crossed the Iowa threshold, or not sure? A professional can confirm it and handle registration.
Nexus Study + Registration + Cleanup
Fixed price, quoted before any work starts
- State-by-state review of your sales and inventory locations
- Registration in states where you have nexus
- Plan for any past-due periods (including voluntary disclosure where appropriate)
- Ongoing sales tax filing option
Disclaimer: This page provides general information for educational purposes and is not tax, legal or accounting advice. State rules change, and whether you have nexus can depend on facts not covered here. Confirm with Iowa's official guidance or a qualified professional before acting. RAHA Financials is not affiliated with any state tax agency.
Sources
- Primary official source: https://revenue.iowa.gov/remote-sellers
- legis.iowa.gov: https://www.legis.iowa.gov/docs/code/423.14A.pdf
- legis.iowa.gov: https://www.legis.iowa.gov/docs/code/423.2.pdf
- sstregister.org: https://www.sstregister.org/
