Short-Term Rental Tax in Iowa (IA)
The state-level tax rate on short-term rentals in Iowa is 11.0% , consisting of 6.0% sales tax and 5.0% lodging tax. Iowa applies general sales and lodging taxes to STRs without STR-specific legislation. Major platforms like Airbnb collect state taxes automatically. With local taxes, the total rate in Des Moines reaches 18.0%. STR operators must register with the state. Iowa charges a 6% state sales tax and a 5% state hotel/motel tax on transient accommodations (less than 31 days). Local hotel/motel taxes of up to 7% may apply.
Annual Tax Estimate for Iowa
The table below shows estimated annual tax obligations at different nightly rates, assuming 65% occupancy (237 nights/year). Estimates are shown for both the state-level rate and the highest local rate (Des Moines).
| Nightly Rate | Gross Revenue | State Tax (11.0%) | Des Moines Tax (18.0%) |
|---|---|---|---|
| $100.00/night | $23,700 | $2,607 | $4,266 |
| $150.00/night | $35,550 | $3,911 | $6,399 |
| $200.00/night | $47,400 | $5,214 | $8,532 |
| $300.00/night | $71,100 | $7,821 | $12,798 |
| $500.00/night | $118,500 | $13,035 | $21,330 |
Estimates assume 65% occupancy. Actual tax may differ based on local exemptions, booking fees, and platform collection.
STR Tax Rates by City in Iowa
Local taxes significantly impact the total STR tax burden in Iowa. The table below shows combined state + local rates for 3 cities, sorted by total rate. The highest combined rate is 18.0% in Des Moines.
| City | Local Tax | Total Rate | Tax on $200/night | Tier | Notes |
|---|---|---|---|---|---|
| Des Moines | 7.0% | 18.0% | $36.00 | Very High | Polk County 5% + Des Moines 2% hotel-motel tax. |
| Iowa City | 7.0% | 18.0% | $36.00 | Very High | Johnson County 5% + Iowa City 2% hotel-motel tax. |
| Cedar Rapids | 7.0% | 18.0% | $36.00 | Very High | Linn County 5% + Cedar Rapids 2% hotel-motel tax. |
How Iowa Compares to Other States
Below is a comparison of Iowa with five states that have similar state-level STR tax rates. This comparison helps illustrate where Iowa stands relative to other states in terms of tax burden, platform collection, and registration requirements.
| State | State Rate | Sales Tax | Lodging Tax | Platform Collects | Registration |
|---|---|---|---|---|---|
| Iowa (IA) | 11.0% | 6.0% | 5.0% | Yes | Required |
| Arizona (AZ) | 11.1% | 5.6% | 5.5% | Yes | Required |
| New Jersey (NJ) | 11.6% | 6.6% | 5.0% | Yes | Required |
| Massachusetts (MA) | 11.7% | 6.3% | 5.7% | Yes | Required |
| Rhode Island (RI) | 12.0% | 7.0% | 5.0% | Yes | Required |
| West Virginia (WV) | 12.0% | 6.0% | 6.0% | Yes | Required |
Frequently Asked Questions About Iowa STR Taxes
What is the short-term rental tax rate in Iowa in 2026?
The state-level tax rate on short-term rentals in Iowa is 11.0%, consisting of 6.0% sales tax and 5.0% lodging tax. Local taxes can bring the total to 18.0% in cities like Des Moines. At $200/night with 65% occupancy, the state-level tax alone is approximately $5,214 per year.
Does Airbnb collect STR taxes in Iowa?
Yes. Airbnb, Vrbo collect state hotel/motel tax. However, local and county taxes may not be covered by platform collection. Always verify with your local tax authority what taxes your platform collects on your behalf.
Do I need to register my short-term rental in Iowa?
Yes. Iowa requires STR operators to register with the state. This typically includes obtaining a sales tax permit and/or lodging tax registration. Many cities and counties in Iowa also require local STR permits or business licenses. Check with both state and local authorities for specific requirements.
What is the total STR tax rate in Des Moines, Iowa?
The total combined tax rate in Des Moines is 18.0%, which includes the 11.0% state rate plus 7.0% in local taxes. Polk County 5% + Des Moines 2% hotel-motel tax. At $200/night with 65% occupancy, this amounts to approximately $8,532 per year in taxes.
How much will I owe in STR taxes in Iowa?
Your annual STR tax depends on your nightly rate, occupancy, and location. At the state level (11.0%), a property earning $200/night with 65% occupancy would owe approximately $5,214/year in state taxes alone. In Des Moines, the total tax at the same rate would be approximately $8,532/year. Use our STR tax calculator for a customized estimate.
Calculate Your Iowa STR Tax
Use our STR tax calculator to get a personalized estimate of your annual tax obligation in Iowa. Enter your nightly rate and occupancy to see your projected state and local taxes, or browse all 50 states to compare STR tax rates across the country.