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.

For information on how to request tax guidance, see the Department's Tax Guidance Request page.

Tax Guidance

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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.

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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. 

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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.

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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.

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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.

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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.

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Sales & Use Tax

During the 2019 Legislative Session, the General Assembly added a new exemption from sales and use tax under House File 779 for grain bins and grain bin materials, effective July 1, 2019. The Department has adopted administrative rules to implement the new exemption. The rules went into effect August 19, 2020. This guidance summarizes the exemption and new administrative rules and addresses some common questions and issues taxpayers may have about the exemption.

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Withholding Tax

Guidance regarding who must act as an Iowa Withholding Agent? plus additional details regarding employee exemption, what income is subject to withholding, taxable compensation, reporting/paying withholding tax, failure to withhold, and penalty/interest.

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Inheritance Tax

This is basic information on the Iowa inheritance tax and is not information regarding probate. This information is not a substitute for legal advice. Please contact an attorney for legal advice or if you have questions concerning probate or any other estate question.

A person who has died may leave property to certain individuals or groups. This may be done through the making of a Will, which is a written document explaining to whom he or she wishes to leave the property. A person may also die without making a Will. If this occurs, Iowa law provides for distribution of the property. Because there are other possible ways to distribute your property, you may wish to consult an attorney or an individual specializing in estate planning.

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Sales & Use Tax

On June 29, 2020 Governor Reynolds signed into law House File 2641. House File 2641 enacted several changes and clarifications to Iowa tax laws on topics of administration, income, sales, and property tax. This is intended to be a basic overview of the sales and use tax provisions of this Act.

The Iowa tax laws that were revised included: Computer Peripherals, Updates to Certain Digital Products and Services, Preserve Whitetail Hunting Exemption, Tribal Governments, Exemptions and Refunds on Certain Construction Projects, Manufactured Housing Use Tax Rate, Sales and Use Collection Obligations, Snowmobile and ATV Sales Tax Collection

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