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April 18, 2025
Question

The automated sales tax for some customers is incorrect. Iowa sales tax is based on the county shipped to. The ship to address is correct-QBO shows 6% but should be 7%.

  • April 18, 2025
  • 1 reply
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All taxable sales in Iowa include 6% State tax. Some Iowa counties also pay a 1% County tax, but not all locations include the 1% County tax.

1 reply

April 18, 2025

To ensure the correct tax rate applies to your sales, you can create a custom rate in QuickBooks Online (QBO), Slamar. Let's work together to resolve this issue.

 

Currently, QBO doesn't have a feature to set up sales taxes for different counties in Iowa. However, you can use Custom rates to add rates specific to the county you need. You can choose this rate while creating a transaction.

 

I suggest consulting with your state agency or asking your accountant when adding a custom rate. Here's how:

 

  1. Go to Taxes, then Sales tax.
  2. Select Sales tax settings.
  3. In the Add agency dropdown, click Add custom rate.
  4. Choose Single or Combined.
  5. Enter the Name of the custom rate.
  6. Select the Agency you file payments to.
  7. Enter the Rate, then hit Save.

 

Furthermore, to record payments made to tax agencies and review reports directly within QBO, you visit this material: Manage sales tax payments in QuickBooks Online.

 

By following these steps, you can ensure your business remains compliant and your financial records stay accurate. Feel free to post a reply if you have any other questions about managing your sales tax.