Iowa sales tax codes and rates
Iowa's state sales tax rate is 6%; county and city rates come on top and are not included. A Nefin company that sells into Iowa gets 4 sales codes, each named after the line of the 32-028 it fills, so the return's figures add up as you invoice. Purchases you owe use tax on go under IA-7, and Nefin works out the use tax due.
Iowa codes from the 32-028
Each code is “IA-” plus the line it fills on the 32-028. Rates are the state rate only; add local rates in Settings, VAT rates, where you collect them.
| Code | What it covers | Rate |
|---|---|---|
| IA-5 | IA taxable amount 6% state (32-028 Line 5) | 6% |
| IA-4a | IA interstate commerce (32-028 Exemption Worksheet line a) | 0% |
| IA-4e | IA sales for resale (32-028 Exemption Worksheet line e) | 0% |
| IA-4i | IA other exempt sales incl. government (32-028 Worksheet line i) | 0% |
| Code | What it covers | Rate |
|---|---|---|
| IA-7 | IA taxable purchases, use tax (32-028 Line 7) | 0% |
Iowa in the tax books
Nefin’s sales tax book has one row per invoice and one column per 32-028 line; these are the Iowa columns and the totals worked out from them.
Sales Tax Book
Iowa - 32-028
- [IA-5]Taxable amount (Line 5)
- [IA-4a]Interstate commerce (Line 4, worksheet a)
- [IA-4e]Resale (Line 4, worksheet e)
- [IA-4i]Other exemptions (Line 4, worksheet i)
Totals Nefin calculates
- [IA-1] Gross sales (Line 1)Sum of the net amounts in [IA-5] + [IA-4a] + [IA-4e] + [IA-4i]
- [IA-6] State sales tax 6% (Line 6, local option excluded)Net amount × 6%, from [IA-5]
Use Tax Book
Iowa - 32-028
- [IA-7]Taxable purchases (Line 7)
Totals Nefin calculates
- [IA-10] Use tax 6% (Line 10)Net amount × 6%, from [IA-7]
Frequently asked questions
What is the Iowa sales tax rate?
The state rate is 6%. Counties, cities and districts may add local rates, which vary by address and are not part of these codes.
Which Iowa sales tax codes does Nefin set up?
4 sales codes from the 32-028, for example IA-5 (IA taxable amount 6% state (32-028 Line 5)), IA-4a (IA interstate commerce (32-028 Exemption Worksheet line a)), IA-4e (IA sales for resale (32-028 Exemption Worksheet line e)).
How does Nefin handle Iowa use tax?
Book a purchase on which the vendor charged no Iowa tax under IA-7 (IA taxable purchases, use tax (32-028 Line 7)). The bill stays at the price you paid, and the use tax book works out the tax you owe at 6%.
Are these Iowa codes official?
They are a starting point. Each code follows a line of the 32-028, but check them against your return before you file, and edit them in Settings, VAT rates.