Iowa Sales Tax Registration

In Iowa it is called the Sales and Use Tax Permit. The Iowa Department of Revenue issues it.

Who has to register in Iowa, how to apply, what it costs, how long it takes, and what you file once you have it.

Iowa sales tax registration at a glance

What it is called: Sales and Use Tax Permit; Number issued: Iowa sales and use tax permit number.
Who issues it: Iowa Department of Revenue; Apply online through GovConnectIowa (Business Permit Registration). Paper form: Form 78-005.
State fee: No state fee; No fee. IDR says these permits are free of charge. (Separate fees apply only to permits such as the Household Hazardous Material permit.)
Processing time: As early as 1 business day for the account letter; IDR says the letter with the account number and IDR ID can arrive in as early as one business day, but to allow up to 6 weeks for it by mail. The business may begin collecting tax immediately; its copy of the application serves as proof of registration until the account number arrives.
Remote seller threshold: $100,000 in sales; Measurement period: current or prior calendar year. In effect since July 1, 2019.
Filing frequency: Monthly or annual; Less than $1,200 in sales and use tax per year: file and pay annually (due January 31). $1,200 or more per year: file and pay monthly, electronically. Left blank on the application, the frequency defaults to monthly. Rule from Senate File 2367, effective July 1, 2022. Hotel and motel, automobile rental and construction equipment taxes are always monthly.
State rate: 6%; 1% local option sales tax where adopted (most jurisdictions); 7% combined maximum.

How to register in Iowa

Where to apply: Apply online with the Iowa Department of Revenue. GovConnectIowa (Business Permit Registration)
Application form: Form 78-005, Iowa Business Tax Permit Registration. Form 78-005 (PDF)
What you need: FEIN (required for withholding and recommended to have ready); owner names and SSNs for corporations and similar entities.
What the application covers: Sales tax, use tax, local option sales tax, hotel and motel tax, automobile rental tax, withholding tax, water service excise tax and household hazardous materials permit.
How long it takes: IDR says the letter with the account number and IDR ID can arrive in as early as one business day, but to allow up to 6 weeks for it by mail. The business may begin collecting tax immediately; its copy of the application serves as proof of registration until the account number arrives.
What it costs: No fee. IDR says these permits are free of charge. (Separate fees apply only to permits such as the Household Hazardous Material permit.)
Renewal: Sales and use tax permits are valid until revoked by the Department.

After you register

How often you file: Monthly or annual. Less than $1,200 in sales and use tax per year: file and pay annually (due January 31). $1,200 or more per year: file and pay monthly, electronically. Left blank on the application, the frequency defaults to monthly. Rule from Senate File 2367, effective July 1, 2022. Hotel and motel, automobile rental and construction equipment taxes are always monthly.
Due date: Last day of the month after the period (annual returns due January 31).
Periods with no sales: You still file a return for every period, even with no sales.
Rates and sourcing: The state rate is 6%. 1% local option sales tax where adopted (most jurisdictions); 7% combined maximum. Sourcing: destination (Streamlined Sales Tax member).
Late returns: 5% of unpaid tax for failure to file on time and 5% for failure to pay on time; one late monthly or quarterly return or payment in three years may be waived. A further $1,000 applies if a return is not filed within 90 days of written demand.

Iowa rules in plain English

In Iowa, you need a Sales and Use Tax Permit from the Iowa Department of Revenue (IDR). You can apply online through GovConnectIowa, or mail or fax Form 78-005, the Iowa Business Tax Permit Registration. Online is the fastest route. The permit is free. IDR says the letter with your account number can come in as little as one business day, but to allow up to six weeks by mail. You may start collecting tax right away, and your copy of the application serves as proof until the number arrives. The permit does not expire unless IDR revokes it. When you apply, you estimate your yearly tax. If you expect under $1,200 a year, you file once a year, by January 31. Otherwise you file monthly, by the last day of the next month. If you leave the estimate blank, you are set to monthly. The state rate is 6%, and most places add a 1% local option tax. Remote sellers must register once Iowa sales reach $100,000 in the current or prior calendar year. Iowa taxes some services and software as a service. The mistake to avoid: not filing when you had no sales. IDR requires a return every period from your start date, even with zero tax, until you cancel the account.

Sources: Iowa Department of Revenue · GovConnectIowa (Business Permit Registration) · Form 78-005 (PDF)

More Iowa facts

Since July 1, 2022 (Senate File 2367), Iowa has one combined sales and use tax permit and only two filing frequencies: annual for under $1,200 in tax per year, monthly otherwise. Source
Iowa taxes software as a service and specified digital products. Source
Iowa is a member of the Streamlined Sales Tax Governing Board. Source
An in-state retailer needs a permit for each place of business; remote sellers get one permit regardless of locations. All locations added on one registration file a single consolidated return. Source
Businesses selling to an Iowa state agency must hold a valid permit before the sale. Source

We register you in Iowa

Answer a few questions about your business. We prepare your Iowa Sales and Use Tax Permit application, file it with IDR, and send you the number. $199 per state. Any state fee is separate.

Start my Iowa registration

Iowa sales tax registration FAQ

Do I need to register for Iowa sales tax?

A retailer with any permanent or temporary place of business, employee or other representative, or property in Iowa must hold a permit and collect Iowa tax. Sellers with no physical presence must register after $100,000 in sales in Iowa (measurement period: current or prior calendar year).

How long does it take to get an Iowa Sales and Use Tax Permit?

IDR says the letter with the account number and IDR ID can arrive in as early as one business day, but to allow up to 6 weeks for it by mail. The business may begin collecting tax immediately; its copy of the application serves as proof of registration until the account number arrives.

What does an Iowa Sales and Use Tax Permit cost?

No fee. IDR says these permits are free of charge. (Separate fees apply only to permits such as the Household Hazardous Material permit.) Our fee to prepare and file the application is $199.

When do I file Iowa sales tax returns?

Filing frequency: monthly or annual. Less than $1,200 in sales and use tax per year: file and pay annually (due January 31). $1,200 or more per year: file and pay monthly, electronically. Left blank on the application, the frequency defaults to monthly. Rule from Senate File 2367, effective July 1, 2022. Hotel and motel, automobile rental and construction equipment taxes are always monthly. Due date: last day of the month after the period (annual returns due January 31). File a return every period, even with no sales. Source: Form 78-005 instructions.

Do I need to register in Iowa as a remote seller?

Sellers with no physical presence must register after $100,000 in sales in Iowa (measurement period: current or prior calendar year). Since July 1, 2019, a marketplace facilitator that makes or facilitates $100,000 or more in Iowa sales must collect state and local option sales tax on all taxable sales through its marketplace (IDR Remote Sellers & Marketplace Facilitators guidance). Source: Iowa Code 423.14A.

What happens if I sell in Iowa without an Iowa Sales and Use Tax Permit?

Knowingly selling at retail without a permit is a serious misdemeanor; selling after a permit is revoked is an aggravated misdemeanor. Corporate officers who so act are also liable. Source: Iowa Code 423.40; Iowa Code 423.36(1).

Nearby states

This page summarizes Iowa sales tax registration rules for general information and is not tax advice. Confirm current requirements with the Iowa Department of Revenue or your tax adviser. State rules last checked October 2, 2026.