To get a tax ID number in Iowa, first obtain a federal Employer Identification Number from the IRS, then register your business through GovConnectIowa, the Iowa Department of Revenue’s online portal. Registration is free, takes about 15 to 20 minutes with your information ready, and your permit letter is typically available electronically within one business day. Iowa doesn’t issue a single “tax ID” the way the IRS issues an EIN. Instead, it assigns separate permit numbers for each tax type your business is required to collect or remit, so you’ll register only for the ones that match what you actually do.
Start With Your Federal EIN
Iowa requires your federal EIN before you can register for state tax permits. Apply free on the IRS website at IRS.gov/EIN. If you apply online during business hours, the EIN is issued at the end of the session. The person applying must have a valid Social Security Number, an existing EIN, or an Individual Taxpayer Identification Number.
Corporations, partnerships, and LLCs must have an EIN. Sole proprietors can sometimes use a Social Security Number, but if you plan to hire employees or register for Iowa withholding tax, you’ll need an EIN regardless. Handle this first so your Iowa registration doesn’t stall.
Decide Which Iowa Permits You Need
Forming an LLC or filing articles of incorporation does not, by itself, trigger an Iowa tax permit. The permits are tied to specific business activities, and you register for the ones that apply.
- Sales and use tax permit: required if you sell tangible goods, specified digital products, or taxable services in Iowa. The state sales tax rate is 6%, and most jurisdictions add a 1% local option sales tax.
- Use tax registration: required if you buy taxable items from out-of-state sellers who didn’t collect Iowa tax. If you owe less than $1,200 per year in use tax, you can file the Iowa Non-Permit Use Tax Return instead of registering for a full permit.
- Withholding tax permit: required if you employ anyone in Iowa and must withhold state income tax from wages.
- Other permits: separate registrations exist for motor vehicle rental tax, household hazardous materials, and other specialized taxes. You select them during the same registration.
A retailer cannot legally make taxable sales in Iowa without a permit. Iowa Code section 423.36 prohibits it, and the Department of Revenue can revoke a permit for tax delinquency or noncompliance. Operating without a required permit exposes you to back taxes, penalties, and interest on every sale you should have collected on.
Remote Sellers and Marketplace Sales
If you’re based outside Iowa, the $100,000 economic nexus threshold determines whether you register. Any remote seller with $100,000 or more in gross revenue from Iowa sales in the current or previous calendar year must collect and remit Iowa sales tax. Sellers with a physical presence in Iowa must collect regardless of sales volume.
Marketplace facilitators such as Amazon or Etsy have their own obligation. A facilitator that makes or facilitates $100,000 or more in Iowa sales must collect and remit Iowa sales and local option sales tax on all taxable sales through its platform. Iowa does not let facilitators and individual sellers agree on who collects, so if the facilitator is collecting, that’s the end of it.
If you sell exclusively through a marketplace that already collects Iowa sales tax, you don’t need your own Iowa sales tax permit. If you also sell through your own website, catalog, or other non-marketplace channels, combine your marketplace and non-marketplace Iowa sales to determine whether you hit the $100,000 threshold for the non-marketplace side.
What to Have Ready Before You Apply
The online registration moves quickly if you gather everything first. Incomplete applications get delayed, and paper forms are returned if anything is illegible or missing. Have these on hand:
- Federal EIN, your nine-digit IRS number.
- Business legal name, physical location, and mailing address.
- Six-digit NAICS code that classifies your industry. You can look this up at the Census Bureau’s NAICS site.
- Full legal name, address, and Social Security Number for all managing owners, partners, or corporate officers.
- Email address and phone number.
- Exact start date for each taxable activity, such as the date of your first sale or first hire.
- The list of tax permits you’re requesting based on your activities.
Register Through GovConnectIowa
The online portal is the fastest path. The steps:
- Go to govconnect.iowa.gov and create a GovConnectIowa user account if you don’t have one.
- Log in and select “Register a New Business.”
- Work through the screens to enter your business information, owner details, and the tax types you need.
- Review everything and submit the application electronically.
- Save the confirmation number that appears on screen. It’s your temporary proof of registration.
There’s no fee. Your permit letter, containing your account number, IDR ID, and filing instructions, is typically available electronically under the “View Letters” action within one business day. If you need a mailed paper copy, allow up to six weeks.
The Paper Alternative
If you can’t register online, submit Form 78-005, the Iowa Business Tax Permit Registration form. Download it from the Iowa Department of Revenue website, complete every page by hand, and send it by mail or fax. The Department will not accept the form by email.
- Fax: 515-281-3906
- Mail: ATTN Registration Services, Iowa Department of Revenue, PO Box 10470, Des Moines, IA 50306-0470
Paper is slower than the one-business-day online turnaround, and anything incomplete or hard to read gets returned.
Don’t Forget Unemployment Insurance
If you have employees in Iowa, the withholding tax permit from the Department of Revenue covers only state income tax withholding. Unemployment insurance tax is administered by Iowa Workforce Development, a separate agency, through its own system called MyIowaUI. Registering with the Department of Revenue does not register you with Iowa Workforce Development. This is a common and expensive miss for new employers. Register with both as soon as you hire your first Iowa employee.
What Happens After You Register
When the Department processes your registration, it assigns a filing frequency for each tax type based on your expected liability. For sales and use tax, businesses collecting less than $1,200 per year file annually; those at $1,200 or more file monthly and must file and pay electronically through GovConnectIowa. Hotel and motel operators, auto rental companies, and construction equipment taxpayers file monthly regardless of amount. For withholding tax, filing runs quarterly, monthly, or semimonthly depending on annual liability, and all withholding filings and payments must go through GovConnectIowa.
Keep your account information current in the portal. Address changes, business name updates, and officer changes are all submitted through GovConnectIowa. If the Department can’t reach you, the first sign of a problem may be a revocation notice rather than a routine letter.