Iowa: Sales Tax Handbook

Iowa:

Are Food and Meals 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 food and meals in Iowa, including catering and grocery food. To learn more, see a full list of taxable and tax-exempt items in Iowa.

Catering

TAXABLE

In the state of Iowa, any voluntary gratuities that are distributed to employees are not considered to be taxable.

Grocery Food

EXEMPT

Sales of grocery food are exempt from the sales tax in Iowa.

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