Iowa Amazon Sales Tax
Iowa enforces its marketplace facilitator law since January 2019, and Amazon collects Iowa state and local option sales tax on facilitated sales.
Overview
Iowa's marketplace facilitator law took effect January 1, 2019. The state base rate is 6%, and local jurisdictions may add a local option sales tax of up to 1%, producing a combined rate range of roughly 6% to 7%. Amazon collects and remits Iowa state sales tax and applicable local option tax on orders it facilitates into the state.
Iowa originally used a dual $100,000-or-200-transactions standard, but the 200-transaction prong was repealed effective May 3, 2019, leaving a $100,000 sales threshold only. Iowa hosts a small number of Amazon facilities (in the Bondurant/Des Moines area), so some marketplace sellers may also have had physical-nexus exposure from stored inventory.
For Amazon-only sellers, Amazon's collection covers Iowa marketplace orders, so there is no separate ongoing registration obligation tied solely to those sales. Sellers with direct (non-Amazon) Iowa sales should evaluate the $100,000 threshold and consult a tax professional for edge cases.
What FBA sellers still need to know
No registration for ongoing Amazon-only sales. Direct/non-Amazon sellers with $100,000 or more in gross revenue from Iowa sales (the 200-transaction prong was removed May 3, 2019) must register and remit.
This content is educational and not legal or tax advice. Sales tax law changes frequently and is jurisdiction-specific. Always verify with a qualified tax professional and the state revenue department before making compliance decisions.
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