When Is Iowa Sales Tax Due? Deadlines and Filing Dates

Sales tax in Iowa is a consumption tax levied on the sale of various goods and services within the state. Businesses that sell taxable goods or provide taxable services are generally required to collect this tax from their customers and then remit it to the Iowa Department of Revenue. Understanding when to collect and remit this tax is crucial for businesses to remain compliant with state tax laws.

Determining Your Sales Tax Filing Frequency

The Iowa Department of Revenue determines how often a business must file and pay sales tax, which can be monthly, quarterly, or annually. This assignment is based on the average amount of sales tax liability a business collects. For instance, businesses collecting less than $1,200 in sales and use tax per year are typically assigned an annual filing frequency.

Businesses that collect $1,200 or more in sales and use tax annually are generally designated as monthly filers. There is also a seasonal filing option for businesses that collect $1,200 or more annually but only operate during four or fewer months each year. The Department of Revenue usually notifies businesses of their assigned filing frequency, and this information is also accessible through their online GovConnectIowa account.

Key Sales Tax Due Dates

Once a business knows its assigned filing frequency, adhering to the specific due dates is essential for compliance. For monthly filers, sales tax returns and payments are due on the last day of the month following the reporting period. For example, sales tax collected in January is due by February 28 or 29, depending on the year.

Quarterly filers, if applicable, have due dates on the last day of the month following the end of each calendar quarter. This means tax for the first quarter (January-March) is due by April 30, the second quarter (April-June) by July 31, the third quarter (July-September) by October 31, and the fourth quarter (October-December) by January 31 of the following year. Annual filers must submit their return and payment by January 31 of the following year for the preceding calendar year’s sales. If any due date falls on a weekend or state holiday, the deadline is extended to the next business day.

Submitting Your Sales Tax Return and Payment

The primary method for filing Iowa sales tax returns and making payments is electronically through the Iowa Department of Revenue’s GovConnectIowa system, also known as eFile & Pay. Businesses must access this online portal using their Business eFile Number (BEN), user ID, and web password. Once logged in, filers select the appropriate tax type, enter the calculated sales data, and proceed to the payment section. The system generally offers various payment methods, including ACH debit, which allows direct withdrawal from a bank account, and credit card payments. A convenience fee, typically around 2.5%, may apply when paying by credit card.

Penalties and Interest for Late Payments

Failing to file or pay Iowa sales tax by the designated due date can result in financial penalties and interest charges imposed by the Iowa Department of Revenue. A penalty of 5% of the unpaid tax is typically assessed if a return is not filed by the due date. An additional 5% penalty applies if the tax due is not paid by the due date. Interest also accrues on unpaid sales tax, starting from the original due date of the return. This interest rate can change annually; for example, the annual interest rate for 2025 is 10%, which translates to approximately 0.0274% per day.