This is intended as a general guide, and is not an all-inclusive discussion of Iowa sales and use tax law.
Iowa law imposes both a sales tax and a use tax. The rate for both is 6%, though an additional 1% applies to most sales subject to sales tax, as many jurisdictions impose a local option sales tax. There is no local option use tax.
Both sales tax and use tax are applied to the sales price from sales of tangible personal property, specified digital products, and taxable services. The difference between the two taxes is the circumstances under which the taxes are imposed.