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Expanded Instructions
  • Instruction Year: 2023

Information for Businesses and Individuals

Do you purchase items from out of state or through the internet, catalogs, magazines, or vendors who advertise on television or radio? Will those items be used in Iowa? Would they be subject to Iowa sales tax if purchased in Iowa?

Are you paying tax on those purchases? If not, you owe Iowa use tax on the purchase price. 

If you purchase tangible personal property for use in Iowa and the seller does not charge you Iowa tax on the purchase, you owe a 6% tax known as the use tax on the price of the purchase.


Individuals without a permit who rarely make purchases subject to use tax should pay their tax in one of the following ways:

Anyone who regularly purchases merchandise from out of state for their own use in Iowa should register for a use tax permit and pay the tax. 


Businesses making taxable purchases on a regular basis should register with the Iowa Department of Revenue to file use tax returns. However, some businesses may only occasionally make purchases for their own use and owe Iowa use tax. If this type of purchase is not typical for your business, instead of separately registering for use tax, you can report the purchase on the Total Taxable Purchases line of your monthly or annual sales and use tax return or file and pay the tax as outlined for individuals above.

For more information, see our Sales and Use Tax Guide.