The sales tax rate in Scott County, Iowa is 7%. That total combines Iowa’s 6% state sales tax with a 1% local option sales tax adopted by the county, and it applies to the same purchase whether you make it in Davenport, Bettendorf, Eldridge, or anywhere else in the county, including unincorporated areas.
How the 7% Breaks Down
Iowa law sets a 6% state sales tax on sales of tangible personal property, specified digital products, and taxable services, and that rate is uniform across every county.1Justia. Iowa Code 423.2 – Tax Imposed The additional 1% comes from Scott County’s local option sales and services tax, adopted under Iowa Code Chapter 423B.2Iowa Legislature. Iowa Code Chapter 423B – Local Option Sales and Services Tax The local option attaches to the same transactions the state taxes, with narrow carve-outs such as motor fuel that already carries fuel tax.
Every incorporated city in Scott County participates in the local option, as do all unincorporated areas, so you won’t find a lower rate by crossing a city line within the county.3Scott County Iowa. Chapter 33 – Local Option Sales and Service Tax Scott County directs its local option revenue into the General Fund to reduce property tax requirements, meaning the extra penny at the register offsets what would otherwise show up on county property tax bills.
What the 7% Applies To
Goods and Digital Products
If you buy a physical item at retail in Scott County, assume it’s taxable unless a specific exemption applies.1Justia. Iowa Code 423.2 – Tax Imposed Electronics, furniture, appliances, clothing, and sporting goods all carry the full 7%. Digital products get the same treatment. Downloaded software, software delivered on physical media, software as a service, and services tied to maintaining or upgrading digital products are all taxable.4Iowa Department of Revenue. Sales and Use Tax Guide
Services
Services work the opposite way from goods. A service is taxable only if Iowa law specifically names it.5Iowa Department of Revenue. Iowa Sales and Use Tax – Taxable Services The list is long and specific: dry cleaning, vehicle repair, landscaping and tree trimming, engraving and printing, vulcanizing, and dozens more. If a service isn’t on the list, no sales tax applies, regardless of the invoice amount. The authoritative source is Iowa Code section 423.2(6), and the Department of Revenue publishes a current working list.
Shipping and Delivery Charges
Delivery charges listed separately on the sales agreement are not subject to Iowa sales tax. If shipping is bundled into the product price without being broken out, the whole amount, delivery included, becomes taxable.6Cornell Law Institute. Iowa Admin Code r 701-204.8 – Freight, Other Transportation A separate line on the invoice is what keeps shipping untaxed.
What Is Exempt
Iowa’s statutory exemptions apply to both the state tax and the Scott County local option, so an exempt purchase is exempt at the full 7%.
- Food and food ingredients. Groceries and unprepared food are exempt. The exemption does not reach prepared food, candy, soft drinks, dietary supplements, alcoholic beverages, or food sold through vending machines.7Iowa Legislature. Iowa Code 423.3 – Exemptions
- Prescription drugs and medical devices. Prescription medications, durable medical equipment, prosthetic devices, mobility-enhancing equipment, and other medical supplies intended for human use are exempt. The last category covers items such as ostomy supplies, diabetic testing materials, syringes, and catheters.7Iowa Legislature. Iowa Code 423.3 – Exemptions
- Resale purchases. A business buying inventory for resale can avoid sales tax by giving the supplier a completed Iowa Sales/Use/Excise Tax Exemption Certificate (Form 31-014a) within 90 days of the sale. If the buyer later uses the goods instead of reselling them, the buyer owes the tax directly to the Department of Revenue.8Iowa Department of Revenue. Iowa Sales Use Excise Tax Exemption Certificate
- Government and qualifying nonprofit purchases. Qualified government entities and nonprofit organizations are generally exempt on their purchases under Iowa law.
When You Owe Use Tax Instead
If you buy a taxable item from an out-of-state seller who doesn’t charge Iowa sales tax at checkout, you owe Iowa use tax at the same combined 7% rate.4Iowa Department of Revenue. Sales and Use Tax Guide Most large online retailers now collect Iowa tax automatically, but smaller vendors and private-party sellers often don’t, and the obligation falls to the buyer.
Individuals who owe less than $1,200 in use tax per year and don’t hold a sales tax permit can report it on the Iowa Non-Permit Use Tax Return (Form 32-007). Businesses that cross $1,200 annually must register for a sales and use tax permit and report use tax on their regular return.4Iowa Department of Revenue. Sales and Use Tax Guide Use tax is a common blind spot that becomes expensive in an audit, particularly for businesses with regular out-of-state purchases.
If You’re Collecting the Tax as a Seller
Any business selling taxable goods or services in Scott County needs an Iowa sales and use tax permit before its first sale. Permits are free and issued through the GovConnectIowa portal, and a single permit covers taxable activity statewide with no annual renewal.9Iowa Department of Revenue. Business Permit Registration
Filing frequency depends on volume. Businesses collecting $1,200 or more per year file monthly, due by the last day of the month following the reporting period. Those under $1,200 file annually. Hotels, motels, auto rental companies, and construction equipment businesses file monthly regardless of amount, and a seasonal option exists for businesses operating four or fewer months per year.10Iowa Department of Revenue. Filing Frequency and Return Due Dates Returns are filed electronically through GovConnectIowa.11Iowa Legislature. Iowa Code 423.31 – Filing of Sales or Use Tax Returns and Payment
Late filing and late payment each carry a 5% penalty on the unpaid tax, and they can stack. An audit-discovered underpayment triggers a separate 5% penalty, and filing in the wrong form or manner adds another 5% capped at $500 per instance.12Iowa Legislature. Iowa Code 421.27 – Penalties Unpaid balances also accrue interest. For 2026, Iowa charges 10% annual interest on delinquent tax, running from the original due date.13Iowa Department of Revenue. Penalties and Interest Rates
Iowa requires sellers to keep sales tax records available for examination for at least three years, covering invoices, exemption certificates, sales receipts, and anything supporting the figures on filed returns.14Iowa Legislature. Iowa Admin Code r 701-259.3 – Taxpayers Required to Keep Records The most common audit trigger is a mismatch between reported sales and the figures third-party sources, such as credit card processors and marketplace platforms, report to the state.