The Complete Iowa STR Lodging Tax Guide: Airbnb and VRBO Iowa Occupancy Tax Breakdown

Confused about Iowa’s tax requirements for your Airbnb? You’re not alone. From state hotel taxes to local occupancy fees, the rules can seem daunting at first glance. However, we’re here to simplify everything Iowa hosts need to know. Whether you’re starting fresh or have already entered the scene, you’ll be able to learn a thing or two.

Iowa-Wide Lodging Tax Requirements for Airbnb Hosts

Every Airbnb host in Iowa must be aware of the state’s baseline tax requirements. The foundation of your tax obligations starts with the state-level taxes and then the local taxes are just added on top.

There are two main taxes that short-term rental owners must be aware of in Iowa. There’s a State Hotel and Motel Tax of 5% for stays 90 days or shorter. The second tax is a Sales Tax of 6%.

Example: If your rent is at $150 per night with a $50 cleaning fee and a two-night minimum stay.

• Base rental: $150 × 2 nights = $300
• Cleaning fee: $50
• Total pre-tax amount: $350
• State hotel/motel tax (5%): $17.50
• Total charged to guest: $367.50

County and City-Wide Occupancy Tax Requirements

Des Moines, Cedar Rapids, Coralville, Iowa, Marion, and North Liberty

All of these cities have a 7% local Hotel-Motel tax rate. This is on top of the 5% state tax, bringing the total tax rate to 12% for those booking within their respective jurisdictions.

Example: A $150/night rental for two nights with a $30 cleaning fee. These calculations are applicable to all short-term rental accommodations within these cities.

1. Total Listing Price: $300
2. Cleaning Fee: $30
3. State Hotel and Motel Tax (5%): $16.5
4. Local Hotel and Motel Tax (7%): $23.1
5. Total Tax: $39.6
6. Total Charge: $369.6

Wrapping Things Up

Don’t let tax confusion keep you from Airbnb success in Iowa. This breakdown of taxes allows hosts to avoid surprising tax bills and keep in line with the state and city requirements.

If you want to learn more about the taxes applicable to Airbnb hosts in Iowa, check out the official Iowa Department of Revenue website.