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IA Sales Tax 101 Shipping States

Is Shipping in Iowa Taxable?

by Mark Faggiano

Shipping Taxability Iowa

Last updated July 14, 2017

When Winston Churchill said, “It is a riddle, wrapped in a mystery, inside an enigma…” he was talking about Russia, but he could have very well been talking about sales tax. Especially when you consider that each state has diverse rules as to how it’s applied. Today we will answer whether or not sellers will need to pay sales tax on shipping and handling in Iowa, whether they hail from Des Moines or Le Roy (pop. 15).

Is Shipping Taxable in Iowa?

Here is what the Iowa Department of Revenue has to say on the matter:


This seems fairly straightforward. In order for sales tax to not be charged on shipping and handling, the seller must do one of two things.

  1. Separately invoice the shipping and handling charges.


  1. State the shipping and handling charges separately on the bill.

Handling Iowa Shipping and Handling Sales Tax with TaxJar

The TaxJar app defaults to the most common Iowa scenario – that shipping and handling is non-taxable.
However, if your business does charge sales tax on shipping, then TaxJar’s Shipping & Handling Override allows you to update that in your state tax settings. This will make the Iowa Expected Sales Tax Due Report more accurate. This will also tell the TaxJar API to charge sales tax on Iowa shipping.
Have questions or comments about taxable shipping in Iowa? Leave a comment and start the discussion! And to learn more about TaxJar and get started, visit

In Conclusion:

Iowa’s rules on shipping taxability are very straightforward. Sales Tax does not have to be charged on shipping and handling in the Hawkeye State, if the seller either separately invoices for shipping and handling or states shipping and handling charges separately on the bill.

Have you questions about sales tax on shipping in Iowa? Start the conversation in the comments!

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