--- title: "Iowa marketplace facilitator law and 1099-K rules" description: "Iowa marketplaces at $100,000 must collect 6% sales tax plus local option tax for sellers (Iowa Code § 423.14A); marketplace-only sellers need no permit." canonical: https://resellerindex.com/tax/states/iowa/ last_updated: 2026-10-23 publisher: "The Reseller Index" --- [Taxes](https://resellerindex.com/tax/) / [State tax rules](https://resellerindex.com/tax/states/) / Iowa # Selling on eBay, Poshmark or Etsy from Iowa: sales tax and 1099-K rules Under Iowa Code § 423.14A, a marketplace facilitator that makes or facilitates $100,000 or more in Iowa sales collects Iowa sales tax and any local option sales tax on all taxable sales through its marketplace, and the Iowa Department of Revenue says a seller whose Iowa sales all go through such a marketplace does not need an Iowa sales tax permit or returns. Iowa has no 1099-K threshold of its own: the department requires only Forms W-2 and 1099 that list Iowa withholding, so the federal test (over $20,000 in more than 200 transactions) decides whether a platform sends a 1099-K. General information, not tax advice. Check with a tax professional about your own situation. Checked against the official pages listed below on Oct 19, 2026. ## Iowa in short - **General sales tax:** Yes, 6% state rate - **Marketplace facilitator law:** Yes: Iowa Code § 423.14A (Senate File 2417, 2018), since Jan 1, 2019 - **When a marketplace must collect:** Iowa sales made or facilitated on its own behalf or for marketplace sellers of $100,000 or more in the immediately preceding or current calendar year - **Form 1099-K:** No separate state threshold ## Who collects the tax on a marketplace sale A marketplace facilitator over the threshold collects Iowa sales tax and local option sales tax on the entire sales price of each taxable Iowa sale it makes or facilitates, regardless of the seller's location, sales volume or permit status (§ 423.14A). The department says Iowa law doesn't let a facilitator and seller agree to have the seller collect instead. Its page describes facilitators collecting from January 1, 2019, with the current revenue-only $100,000 level effective July 1, 2019. ### If you sell only through marketplaces If a marketplace seller only makes retail sales in Iowa through a marketplace and the facilitator collects Iowa sales tax and local option tax, the seller doesn't need an Iowa sales tax permit or to file Iowa sales tax returns; the tax is reported on the facilitator's return. The department's example: a seller with $200,000 of Iowa sales, all through a collecting facilitator, doesn't register. Registration, resale certificates and what changes when you also sell direct have their own page: [Iowa: seller's permit and resale certificate rules](https://resellerindex.com/tax/sellers-permit/iowa/). The law: [Iowa Code § 423.14A (Senate File 2417, 2018)](https://www.legis.iowa.gov/docs/code/423.14A.pdf), effective Jan 1, 2019. > "the marketplace seller does not need to obtain an Iowa sales tax permit or file Iowa sales tax returns." Iowa Department of Revenue, [Remote Sellers & Marketplace Facilitators](https://revenue.iowa.gov/taxes/tax-guidance/sales-use-excise-tax/remote-sellers-marketplace-facilitators), when all Iowa sales go through a marketplace facilitator that collects > "Iowa law does not allow for this arrangement." Iowa Department of Revenue, [Remote Sellers & Marketplace Facilitators](https://revenue.iowa.gov/taxes/tax-guidance/sales-use-excise-tax/remote-sellers-marketplace-facilitators), on agreements letting the seller collect instead Sources: [Remote Sellers & Marketplace Facilitators](https://revenue.iowa.gov/taxes/tax-guidance/sales-use-excise-tax/remote-sellers-marketplace-facilitators); [Iowa Code § 423.14A](https://www.legis.iowa.gov/docs/code/423.14A.pdf). ## Iowa's sales tax Iowa's sales tax and use tax rate is 6%, and an additional 1% applies to most sales because many jurisdictions impose a local option sales tax; there is no local option use tax, the department's sales and use tax guide says. > "The rate for both is 6%, though an additional 1% applies to most sales subject to sales tax, as many jurisdictions impose a local option sales tax." Iowa Department of Revenue, [Sales & Use Tax Guide](https://revenue.iowa.gov/taxes/tax-guidance/sales-use-excise-tax/sales-use-tax-guide) Sources: [Sales & Use Tax Guide](https://revenue.iowa.gov/taxes/tax-guidance/sales-use-excise-tax/sales-use-tax-guide). ## Form 1099-K: Iowa and the federal test The department's File a W-2 or 1099 page says only forms listing Iowa withholding are required to be filed with it, and its W-2/1099 FAQ says the filing requirement isn't based on Iowa-source income. It sets no separate 1099-K threshold, so the federal test decides whether a platform issues a 1099-K. > "Only forms listing IA withholding are required to be filed." Iowa Department of Revenue, [File a W-2 or 1099](https://revenue.iowa.gov/taxes/file-w-2-or-1099) The federal test, for comparison: the IRS says a payment app or online marketplace must send a Form 1099-K when payments for goods or services total over $20,000 in more than 200 transactions, and adds: "However, they may send you a Form 1099-K with lower amounts and/or transactions." ([Understanding your Form 1099-K](https://www.irs.gov/businesses/understanding-your-form-1099-k), reviewed Jun 28, 2026). The [Instructions for Form 1099-K](https://www.irs.gov/instructions/i1099k) count both parts for the calendar year, through each platform separately, and say the box 1a gross amount is figured without adjustments for credits, discounts, fees, refunds or shipping, so a 1099-K figure is not the same as profit. More on the federal rule in [Form 1099-K for resellers](https://resellerindex.com/guides/1099-k-for-resellers/). Sources: [File a W-2 or 1099](https://revenue.iowa.gov/taxes/file-w-2-or-1099); [W-2 / 1099 Common Questions](https://revenue.iowa.gov/taxes/frequently-asked-questions/w-21099). ## Worked examples ### A $40 sale to a buyer in an Iowa city with local option tax The marketplace collects 6% state tax plus the 1% local option tax: $40 x 7% = $2.80. Where no local option tax applies, it's $40 x 6% = $2.40. A seller with all Iowa sales on collecting marketplaces doesn't register or file for any of it. ### Marketplace sales plus your own website The department's example: Seller B has $400,000 of Iowa sales, $325,000 through a collecting facilitator and $75,000 through its own website. It collects Iowa and local option tax on the $75,000 of website sales, and on its Iowa return reports $400,000 of gross sales with a $325,000 deduction for the marketplace sales. ## Edge cases and details - The $100,000 threshold counts all revenue from Iowa sales, including exempt sales, wholesale sales, sales for resale and sales a marketplace facilitator collected tax on, the department says. - The threshold doesn't apply to a seller with a physical presence in Iowa: such a seller collects on its non-marketplace Iowa sales regardless of volume. - Consignment stores, auctions and other sponsors of special events can be marketplace facilitators, the department says, and then need a permit to remit tax collected at their events. - If a facilitator didn't meet the threshold in 2018 and so wasn't collecting from January 1, 2019, the department said sellers over the threshold had to collect on their marketplace sales until it did. ## What to do 1. Keep each marketplace's sales report showing the Iowa tax it collected on your sales. 2. If you also sell directly to Iowa buyers, read the department's Remote Sellers & Marketplace Facilitators page on combining sales for the $100,000 threshold. 3. Check with a tax professional about Iowa income tax and the federal 1099-K. ## Common questions ### Do I need an Iowa sales tax permit to sell on eBay or Etsy? Not if all your Iowa retail sales go through marketplaces that collect Iowa sales tax and local option tax, according to the Iowa Department of Revenue; the tax is reported on the facilitator's return. ### Can a marketplace and I agree that I collect Iowa tax myself? No. The department says some states allow that kind of agreement but Iowa law does not. ## Related - [Every state on one table: sales tax, marketplace facilitator laws and 1099-K rules](https://resellerindex.com/tax/states/) - [Iowa: seller's permit and resale certificate rules](https://resellerindex.com/tax/sellers-permit/iowa/) - [Indiana: sales tax and 1099-K rules](https://resellerindex.com/tax/states/indiana/) - [Kansas: sales tax and 1099-K rules](https://resellerindex.com/tax/states/kansas/) - [Form 1099-K for resellers: the federal test](https://resellerindex.com/guides/1099-k-for-resellers/) - [Do eBay's fees apply to the sales tax a buyer pays?](https://resellerindex.com/guides/ebay-fees-on-sales-tax/) - [Where each selling app keeps its sales report](https://resellerindex.com/guides/sales-reports-for-taxes/) ## General information, not tax advice This page summarizes Iowa's own published pages and statutes as read on Oct 19, 2026, and the IRS's 1099-K pages. It doesn't say what you should file, register for or pay. Rules depend on your situation and change: check with a tax professional, or with the state's revenue department. ## Sources Official pages this page is built from, with the day each was read. - Iowa Department of Revenue: [Remote Sellers & Marketplace Facilitators](https://revenue.iowa.gov/taxes/tax-guidance/sales-use-excise-tax/remote-sellers-marketplace-facilitators); read Oct 19, 2026. SF 2417, $100,000 threshold, marketplace-only sellers need no permit, no seller-collects agreements, examples, event sponsors. - Iowa Legislature: [Iowa Code § 423.14A](https://www.legis.iowa.gov/docs/code/423.14A.pdf); read Oct 19, 2026. Facilitator threshold and duty to collect on the entire sales price regardless of the seller's permit; 2018 Acts ch 1161. - Iowa Department of Revenue: [Sales & Use Tax Guide](https://revenue.iowa.gov/taxes/tax-guidance/sales-use-excise-tax/sales-use-tax-guide); read Oct 19, 2026. 6% rate; 1% local option sales tax; no local option use tax. - Iowa Department of Revenue: [File a W-2 or 1099](https://revenue.iowa.gov/taxes/file-w-2-or-1099); read Oct 19, 2026. Only forms listing Iowa withholding are required. - Iowa Department of Revenue: [W-2 / 1099 Common Questions](https://revenue.iowa.gov/taxes/frequently-asked-questions/w-21099); read Oct 19, 2026. Filing requirement based on Iowa withholding, not Iowa-source income. - IRS: [Understanding your Form 1099-K](https://www.irs.gov/businesses/understanding-your-form-1099-k), reviewed Jun 28, 2026. The federal 1099-K test. - IRS: [Instructions for Form 1099-K](https://www.irs.gov/instructions/i1099k), reviewed Jun 1, 2026. Both parts of the federal test counted for the calendar year. Subscribe: https://resellerindex.com/subscribe/ --- The Reseller Index Researched and drafted with AI assistance from each platform's and carrier's own published pages. A full-time reseller runs The Reseller Index and will edit every newsletter issue once the newsletter starts. Every number links to its source and carries the date we checked it. Spot an error? [Tell us](https://resellerindex.com/corrections/) and we'll fix it in the public corrections log. General information, not tax, legal or financial advice. Not affiliated with or endorsed by eBay, Amazon, Mercari, Poshmark, Depop, Whatnot, Etsy, TikTok Shop, USPS, the IRS or the software companies whose prices we track; their names belong to them. Each page shows the date its own rates were last checked. Sponsored placements are always labeled "Sponsored". © 2026 The Reseller Index. No trackers, no ad cookies.