Iowa · IA · Money & taxes
Iowa: Are groceries taxed?
Groceries exempt
Iowa exempts most food and food ingredients from its state sales tax.
Groceries bought to eat at home are exempt from Iowa sales tax. Candy, soft drinks and prepared food, such as food sold heated or food the seller combines into one item, are taxable. Food sold for eating on a retailer's premises is presumed to be prepared food.
What the law says
With certain exceptions, food and food ingredients are exempt from Iowa sales tax.
Sources
- Iowa Department of Revenue: Foods for Human Consumption Official · revenue.iowa.gov
- Iowa Admin. Code r. 701-220.2 (Cornell LII) Mirror of official text · law.cornell.edu
Confirm with the state
- Agency
- Iowa Department of Revenue
- Phone
- 515-281-3114
- Website
- revenue.iowa.gov
How bordering states compare
- Illinois Groceries exemptIllinois ended its 1% state sales tax on groceries on January 1, 2026, though many cities and counties may add 1%.
- Minnesota Groceries exemptMinnesota exempts grocery food from its 6.875% state sales tax; candy, soft drinks and prepared food are taxed.
- Missouri Taxed at a lower rateMissouri taxes food at a 1.225% state rate, compared with its 4.225% general state rate.
- Nebraska Groceries exemptNebraska exempts food and food ingredients from its 5.5% state sales tax, except prepared food and vending machine food.
- South Dakota Taxed at the full rateSouth Dakota taxes groceries at its full 4.2% state sales tax rate. Only SNAP and WIC purchases are exempt.
- Wisconsin Groceries exemptWisconsin exempts food and food ingredients from its sales tax, except candy, soft drinks, dietary supplements and prepared food.