Iowa HF498 eliminates state sales and use taxes, effective January 1, 2026.

Iowa HF498 eliminates state sales and use taxes, effective January 1, 2026. The bill reduces the statewide sales tax rate to zero, affecting sales of tangible personal property, digital products, and services. It also eliminates the sales tax dedicated to the secure an advanced vision for education fund (SAVE). Local option taxes remain unaffected. The bill includes provisions for taxing mobile telecommunications services under the federal Mobile Telecommunications Sourcing Act.

Iowa HF498 eliminates state sales and use taxes, effective January 1, 2026.

Iowa HF498 eliminates state sales and use taxes, effective January 1, 2026. The bill reduces the statewide sales tax rate to zero, affecting sales of tangible personal property, digital products, and services. It also eliminates the sales tax dedicated to the secure an advanced vision for education fund (SAVE). Local option taxes remain unaffected. The bill includes provisions for taxing mobile telecommunications services under the federal Mobile Telecommunications Sourcing Act.