Tax Guidance

The guidance available here explains the general guides rather than detailed discussions of Iowa tax law. We make every attempt to keep guidance current, however, changes in law or policy may not be immediately reflected.

If you have tax questions, search our Frequently Asked Questions.

Tax Guidance

Tax Type:
Sales & Use Tax

This guidance is intended as a general guide and is often considered a primary resource for contractors taxability. For additional details reference Iowa Administrative Rules Chapter 701-219.

Last updated:
Tax Type:
Income Tax, Coronavirus/COVID-19

On March 27, 2020, President Donald Trump signed Public Law 116-136, the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020. The CARES Act includes a number of federal tax changes, and several are retroactive to tax years 2018 and 2019. Iowa has not conformed with any of these federal tax changes to the extent they apply to a tax year beginning prior to January 1, 2020. Iowa generally conforms with these federal tax changes to the extent they affect Iowa income taxes for tax years beginning on or after January 1, 2020. This guidance focuses primarily on Iowa’s nonconformity with this federal law for tax years 2018 or 2019, but it also includes explanations of certain other provisions and their impact on Iowa income taxes for tax years beginning on or after January 1, 2020 that may be of interest to taxpayers.

Last updated:
Tax Type:
Sales & Use Tax

A general guide but not an all-inclusive discussion of Iowa sales and use tax law. Generally considered the primary guidance resource for sales & use tax

Last updated:
Tax Type:
General, Income Tax, Tax Credits, Coronavirus/COVID-19

The Department has issued new guidance related to Iowa’s conformity with certain tax provisions of the federal Consolidated Appropriations Act, 2021. This guidance focuses primarily on Iowa’s nonconformity with this federal law for tax years beginning prior to January 1, 2020. Iowa generally conforms with the federal tax changes to the extent they affect Iowa income taxes for tax years beginning on or after January 1, 2020.

Last updated:
Tax Type:
Coronavirus/COVID-19

On March 19, 2020, the Director of the Department of Revenue issued Order 2020-01 granting certain filing and payment extensions pursuant to Iowa Code section 421.17(30) following the Governor’s Proclamation of Disaster Emergency in response to the recent outbreak of the COVID-19 virus. Click to view News Releases, Iowa Small Business Relief Program, tax information, and Common Questions.

Last updated:
Tax Type:
Income Tax, Coronavirus/COVID-19

On June 29, 2020 Governor Reynolds signed into law House File 2641. House File 2641 in part exempts from the Iowa income and franchise tax the receipt of financial assistance grants provided by the Iowa Economic Development Authority under the Iowa Small Business Relief Grant Program. The Department has published updated guidance which describes this tax exemption, identifies qualifying grants, and directs taxpayers on how to claim this exemption on Iowa tax returns. 

Last updated:
Tax Type:
Sales & Use Tax

The 2020 Iowa legislature defined the term “computer peripheral” and added that term to the existing sales tax exemption for computers used in processing or storage of data or information by an insurance company, financial institution, or commercial enterprise (see Iowa Code section 423.3(47)). The Department is providing the following guidance, including non-exhaustive lists of devices, so taxpayers know whether certain devices are taxable or exempt as a computer or computer peripheral.

Last updated:
Tax Type:
Property Tax

Property taxes are not determined by a single individual who assesses your property and sends you a bill. The final tax rate is the result of budgets established to provide services, an assessor’s assessment, a county auditor’s calculations, and laws administered by the Department. Because property assessment involves a series of events that takes 18 months from start to finish, this information will not be able to answer all your questions. It should, however, be able to explain the basic principles and events involved in calculating the property tax rate.

Last updated:
Tax Type:
Sales & Use Tax

Many Iowa retailers have established or strengthened their online presence to make sales to their customers or perhaps reach new ones. The Department is providing this guidance to make sure these businesses are aware of their tax compliance obligations for sales across Iowa and into other states. Topics included within this guidance: Law Changes, Local Option Sales Tax, Marketplace Sales, Remote Sales, Streamlined Sales Tax.

Last updated:
Tax Type:
Sales & Use Tax

This guidance is intended as a general guide. For additional details reference Iowa Administrative Code Chapter 701-226: Agricultural Rules. This is generally considered the primary resource for Farmers taxes.

Last updated: