Iowa Sales Tax on Leases and Rentals Iowa: Sales Tax Handbook


Are Leases and Rentals subject to sales tax?

While Iowa's sales tax generally applies to most transactions, certain items have special treatment in many states when it comes to sales taxes. This page describes the taxability of leases and rentals in Iowa, including motor vehicles and tangible media property. To learn more, see a full list of taxable and tax-exempt items in Iowa.

Motor Vehicles
In the state of Iowa, any rentals for a minimum of 60 days will be considered to be subject to additional automobile rental excise tax. Any leases for at least one year is considered to be exempt from general use tax, but will be subject to the long-term lease tax.

Tangible Media Property
Sales of tangible media property are subject to sales tax in Iowa.

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