Iowa Sales Tax on Home Improvement (2026): Remodel or Repair
When an Iowa contractor charges sales tax on a home job, a remodel or a repair, and three jobs worked at 6%.
Not tax advice. General information from each state's revenue department, checked Oct 29, 2026. Rates shown are the state rate; city and county tax is extra where it applies. The facts of your job and contract can change the answer; for a specific job, ask a tax professional in your state.
The rule in Iowa
Repairs taxed
Remodeling, alteration and addition labor is exempt and you pay tax on materials. Repair services on Iowa's taxable list are taxable to the homeowner.
6%
6% plus 1% local option
Itemizing or time and materials
Repair vs remodel decides, not the invoice.
None for homeowners
Source: 701 IAC 219.13; Iowa Contractors Guide (Iowa rule, eff. Aug 28, 2024)
“expansion or remodeling of structures, the services are exempt from tax.”
Three jobs, worked
| Job | Customer | You pay |
|---|---|---|
| Bathroom $12,000 job, $5,000 materials | $0 remodel $720 repair | $300 |
| Kitchen $40,000 job, $15,000 materials | $0 remodel $2,400 repair | $900 |
| Addition $90,000 job, $35,000 materials | $0 remodel $5,400 repair | $2,100 |
On the kitchen: A remodel is a capital improvement: the customer pays nothing and you pay $900 on materials. A repair job is taxed: $2,400 on the full $40,000.
Also check
- Repair services on Iowa's taxable list are taxable even on a home. Remodeling, alteration and addition labor is exempt.
Iowa sales tax questions
Do contractors charge sales tax in Iowa?
On repairs that are on Iowa's taxable services list, yes. On a remodel, alteration or addition, no; you pay tax on materials.
Is a remodel taxable in Iowa?
No. Remodeling labor is exempt. Repair work on Iowa's list, such as carpentry, plumbing or electrical repair, is taxable.
What does the customer sign in Iowa?
No form is required for a homeowner; the type of work decides.
Compare other states
How we checked
We read each state's sales tax rule for construction contractors on the revenue department or legislature site, and its 2026 state rate. Two independent research passes covered all 50 states and DC, and a third reviewer checked the result. Where a state's own page would not load, the row names the copy we read. Last checked .
This guide explains the general rule for remodeling an owner-occupied home. It is not tax advice.