Iowa Vacation Rental Tax Calculator

Estimate your property tax, lodging tax, federal & state income tax, and depreciation deductions for your Iowa vacation rental property.

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Tax Types

What Taxes Apply to Iowa Short-Term Rentals?

Iowa STR hosts are subject to several types of taxes. Understanding which ones apply — and who collects them — is the first step toward compliance.

Sales Tax

Iowa applies its state sales tax to short-term rental stays — currently at a base rate that contributes to combined lodging rates of 12%. Cities may add local sales tax on top.

Occupancy / Transient Lodging Tax

Iowa's lodging/occupancy tax is the primary STR-specific tax. Combined rates reach 12% in Des Moines and 12% in Iowa City. This includes state, county, and city-level components.

Tourism / Convention Center Tax

While Iowa doesn't have a prominent statewide tourism tax, some cities and resort areas may levy additional tourism development or marketing district assessments of 1–3%.

Federal & State Income Tax

Net rental profit is subject to both federal income tax (10–37% in 2026) and Iowa's state income tax at 5.7%. Reported on Schedule E (Form 1040). Deduct expenses like mortgage interest, repairs, and depreciation.

Property Tax

Iowa's average effective property tax rate is 1.57% — among the highest in the U.S.. Assessed annually on market value. STRs may face higher assessments in some jurisdictions.

Important

Does Airbnb Collect and Remit Taxes in Iowa?

Airbnb has agreements to collect and remit taxes in Iowa — but coverage is not always complete.

Airbnb collects Iowa's state-level lodging tax in most jurisdictions.
In Des Moines and Iowa City: Airbnb may or may not collect all county/city taxes.
Rural areas: You're often fully responsible for all local tax collection.
Even where Airbnb collects, you may owe additional local levies or special district taxes.

Bottom line: Never assume Airbnb handles all your Iowa tax obligations. Verify with your local tax authority.

Compliance

Do You Need a Tax Permit in Iowa?

In most Iowa jurisdictions, yes. Common permits and registrations required:

State sales tax permit / seller's permit
City or county business license
Short-term rental operating permit
Lodging tax registration certificate

Consequences of non-compliance

5–25% penalties on unpaid taxes in Iowa

Revocation of rental permit

Liens on your property

Tax Overview

Short-Term Rental Taxes in Iowa

Key tax facts every vacation rental host in Iowa should know.

State hotel/motel tax: 5%

Local hotel taxes: up to 7% additional

State income tax: ~5.7%

Property tax rate: ~1.57%

City Breakdown

Lodging Tax Rates by City in Iowa

Combined lodging/occupancy tax rates for major vacation rental markets in Iowa.

CityCombined Rate

Des Moines

5% state + 7% local hotel/motel

12%

Iowa City

5% state + 7% local

12%

Dubuque

5% state + 7% local

12%

Rates are estimates based on 2024-2025 data. Always verify with your local tax authority.

FAQs About Iowa Vacation Rental Taxes

Common questions about short-term rental taxes, permits, and compliance in Iowa.

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