Iowa Contractor Sales Tax 2026

Iowa sales tax for contractors 2026. Labor taxable? Materials? Real rules from state revenue department.

Iowa sales tax rate for contractors

  • Combined rate: 6% + 0-1% local (~6.9% avg)
  • Construction labor taxable: PARTIALLY - depends on contract type
  • Tax authority: Iowa Department of Revenue

How Iowa treats contractor labor

New construction labor exempt. Repair, maintenance, remodeling labor TAXABLE under Iowa Code ยง423.2(7).

Iowa-specific rules

Iowa taxes repair, remodeling, and landscaping labor (separate from new construction). Iowa uses an online MNLR system for residential - register your project online or lose lien rights.

Iowa mechanics lien rights

Beyond sales tax, Iowa contractor billing must respect the mechanics lien deadline of 90 days from last work. Preliminary notice: Iowa Mechanics Notice and Lien Registry (MNLR) registration required for residential.

Iowa contractor licensing

Iowa Workforce Development (Contractor Registration) - required for licensed work. $50 (registration; not a license). Board: https://www.iowaworkforcedevelopment.gov.

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Iowa contractor resources by trade