Short-Term Rental Taxes and Licenses in Iowa

Five stacked layers of short-term rental rules. From the bottom: state, county, city, special districts, and HOA and CCRs. The state layer is marked, the one this page covers.

Step one of five

Iowa is the layer that never changes.

Everything on this page applies right across Iowa, wherever the property sits. That makes it the one part you can settle before you know the address.

The four layers above it are the ones that move: county, city, special purpose districts, then private rules like an HOA or a neighbourhood covenant that appear in no government database at all. Two properties on opposite sides of the same street can owe different totals.

Run your address for the other four

What Iowa charges statewide

These apply across Iowa. Counties and cities add their own on top, which is where the totals diverge.

Tax	Rate	Applies to	Confidence
Hotel/Motel TaxIowa Department of Revenue	5%	Total charge for renting room, including cleaning and service fees.	High	Source
Sales TaxIowa Department of Revenue	6%	Total rental charge, including cleaning and service fees.	High	Source

Drawn from the Iowa jurisdictions researched so far. These are the statewide figures only. Open a city below, or run your own address, for the county, city and district layers that stack on top.

Does the platform collect it for you

The statute covers both state and local hotel/motel taxes, so facilitators must collect and remit applicable local lodging taxes as well.

Channel	What you charge	Who remits the state layer	Confidence
AirbnbPlatform is merchant of record	5% state hotel/motel tax, 6% state sales tax, plus local hotel/motel tax where applicable	The platform	High	Source
VrboYou are merchant of record	5% state hotel/motel tax, 6% state sales tax, plus local hotel/motel tax where applicable	You do	High	Source
Booking.comYou are merchant of record	5% state hotel/motel tax, 6% state sales tax, plus local hotel/motel tax where applicable	You do	High	Source
ExpediaYou are merchant of record	5% state hotel/motel tax, 6% state sales tax, plus local hotel/motel tax where applicable	You do	High	Source
GoogleYou are merchant of record	5% state hotel/motel tax, 6% state sales tax, plus local hotel/motel tax where applicable	You do	High	Source
WhimstayYou are merchant of record	5% state hotel/motel tax, 6% state sales tax, plus local hotel/motel tax where applicable	You do	High	Source
DirectYou are merchant of record	5% state hotel/motel tax, 6% state sales tax, plus local hotel/motel tax where applicable	You do	High	Source

Questions owners ask about Iowa

Does Airbnb collect Iowa state and local hotel/motel tax for me?

Yes. Airbnb collects and remits both the Iowa state hotel/motel tax, state sales tax, and applicable local hotel/motel tax for all short-term rental bookings in Iowa. Owners do not need to separately remit these taxes for Airbnb bookings.

Source

What is the state tax rate on short-term rentals in Iowa?

Iowa charges a 5% hotel/motel tax and a 6% state sales tax on short-term lodging. Local hotel/motel taxes may apply as well, depending on the property's location.

Source

What counts as a short-term rental in Iowa?

A rental of accommodations for less than 31 consecutive days is taxable as a short-term stay in Iowa. Stays of 31 days or more are exempt from state hotel/motel and sales tax.

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Do I need a state permit to operate a short-term rental in Iowa?

Yes. You must register with the Iowa Department of Revenue for a sales tax and hotel/motel tax permit before collecting tax from guests.

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Are long-term stays exempt from Iowa hotel/motel tax?

Yes. Rentals of 31 consecutive days or more are exempt from both the state hotel/motel tax and sales tax.

Source

When are state tax returns due for short-term rentals in Iowa?

Tax returns are due monthly, quarterly, or annually as assigned. Monthly returns are due the last day of the month after the filing period. Returns must be filed even if no tax is owed.

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Are cleaning fees subject to tax in Iowa short-term rentals?

Yes. Cleaning fees and any other required charges collected from guests are included in the taxable base for both sales and hotel/motel taxes.

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Do government or exempt organizations have to pay hotel/motel tax in Iowa?

Bookings paid directly by government agencies or recognized exempt organizations may be exempt from hotel/motel tax, provided exemption documentation is furnished.

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What happens if I file Iowa hotel/motel tax returns late?

Late returns face a penalty of 10% of unpaid tax, with a $10 minimum penalty per period filed late.

Source

Already researched

Nothing in Iowa yet

No Iowa jurisdiction has been run. Start one and the page publishes itself, usually within a few minutes.

Run the first one

After the research

Setting the rates takes an afternoon. Running the property never stops.

The tax setup on this page is a one-time job, and you can do it yourself. Owners call us about everything underneath it.

The work How often

Channel tax settingsRates entered on each platform, direct included Once

Pricing against the marketRates moved as comps, events and pace change Daily

Guest messagingEnquiries, check-ins, problems at 2am 24/7

Listings and distributionContent, photos and settings across every channel Ongoing

Turnovers and coordinationCleans, maintenance, the gaps between stays Every checkout

Reviews and reputationFollow-up that earns the five star, disputes that do not Every stay

We run 300+ properties across 50+ cities and 7 countries, remotely, without standing in any of them. A property in Iowa is no harder for us to take on than one down the road from our last partner.

See how Corzly manages properties

We do not register, file or remit for you, and we are not tax professionals.